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charle [14.2K]
3 years ago
11

What does it mean to say that "banks create money"?

Business
1 answer:
vova2212 [387]3 years ago
8 0
The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves 
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Offshoring

The answer is offshoring because people do work for companies that are in other countires or states because they are probably a proffesional at what they are doing.

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Read 2 more answers
Setsuko wants to start a business of her own. She does not have enough savings, so she approaches her bank to obtain short-term
Arisa [49]

The type of funding obtained by Setsuko is the line of credit.

The following information should be relevant for the line of credit:

  • It is treated as a flexible loan.
  • It is an amount of money i.e. defined and can be accessed whenever it is needed and after that, it could be repaid instant or over a period of time.
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Since in the given situation, it is mentioned that:

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  • Bank lent her $10,000.

Therefore we can conclude that the type of funding obtained by Setsuko is the line of credit.

Learn more about the line of credit here: brainly.com/question/17937007

3 0
2 years ago
Alicia has at most $196 to buy a new baseball glove and a new baseball bat. which inequality represents this situation?
madam [21]
<span>Estimate for buy a new globe and buy a new bat   196 $</span>

Let the cost of a new glove = A
Let the cost of a new bat = B

Using these variables, 
inequality will be
(A + B) <span><</span><span> 196 $</span>
6 0
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