Which example best describes how a bank injects money into the economy? A bank opens a savings account for a c

Question

Which example best describes how a bank injects money into the economy?

A bank opens a savings account for a customer.
A bank approves a loan for a customer.
A bank buys a company’s rapidly growing stock.
A bank buys property in a bustling business district.

GPT-5 mini · Answer

A bank approves a loan for a customer.

When a bank makes a loan it creates a deposit (crediting the borrower’s account), which increases the money supply. Opening a savings account or buying stock/property mainly transfers existing funds rather than creating new money.

Which example best describes how a bank injects money into the economy?

A bank opens a savings account for a customer.
A bank approves a loan for a customer.
A bank buys a company’s rapidly growing stock.
A bank buys property in a bustling business district.

All Answers 1

Submit Your Answer

Which example best describes how a bank injects money into the economy? A bank opens a savings account for a customer. A bank approves a loan for a customer. A bank buys a company’s rapidly growing stock. A bank buys property in a bustling business district.

All Answers 1

Submit Your Answer

Which example best describes how a bank injects money into the economy?

A bank opens a savings account for a customer.
A bank approves a loan for a customer.
A bank buys a company’s rapidly growing stock.
A bank buys property in a bustling business district.