Banks create money whenever they:
A: accept a deposit.
B: receive monthly payments on their loans.
C: receive interest on existing loans.
D: lend excess reserves to a borrower.
5 answers
What have you learned from your text?
Text suggest both choices A and D are true.
I vote for D.
Thank you! Was unclear due to the suggestion that choice A is the first step leading to choice D.
You're welcome.