1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
baherus [9]
3 years ago
8

How do banks create money?

History
2 answers:
kifflom [539]3 years ago
8 0

They make the money with bank deposits

Bas_tet [7]3 years ago
4 0

The correct answer is: "They channel money from savers and issue loans".

<u>The money creation process that takes place in the banking system works in the following way.</u>

Economic agents deposit their savings in a bank, in exchange for a retribution (interest rate). Banks, by law, have to keep in cash a certain percentage of the money deposited, this is called the reserve ratio. But the rest of the money is used to issue loans to economic agents that need funding, in exchange for an interest rate that this time is earned by the bank and paid by the borrowers.

You might be interested in
Why does globalization give countries an incentive to reduce wages for their
Liono4ka [1.6K]
It would be C For the correct answer
5 0
3 years ago
Read 2 more answers
Which of these was more true about life in the middle colonies than the
satela [25.4K]

Answer:

B

Explanation:

4 0
3 years ago
What was the result when the Soviet union launched Sputnik 1 in 1957
Hitman42 [59]

Explanation:

the world's first artificial satelite was about the size of a beach ball (58 cm. or 22.8 inches in diameter), weighed only 83.6 kg. or 183.9 punds, and took about 98 minutes to orbit the Earth on its elliptical path.

8 0
3 years ago
Which of the following did the five reformers who organized the Seneca Falls Convention have in common?
atroni [7]
D. they were active in the abolition movemen.
8 0
3 years ago
Read 2 more answers
The first incident in which the constitution proved its strength and power was the _______________________.
padilas [110]
<span>The first incident in which the constitution proved its strength and power was the Whiskey Rebellion. In 1794 a group of Pennsylvania farmers chose to rebel against taxation of Whiskey. This Rebellion led to several police deaths due to their attempts of trying to serve warrants to offenders.Later in the year the army concurred and took down the rebellion. The was the first incident that the new government under the Constitution could respond to promptly and demonstrated the power of the US Government.</span>
5 0
3 years ago
Other questions:
  • ______made the western cattle industry profitable
    12·2 answers
  • Why was the government's decision to raise bread prices such a crucial cause of the French Revolution?
    6·2 answers
  • The landmark case of Marbury v. Madison in 1803 created the system of “judicial review”, by which the Supreme Court can do which
    7·1 answer
  • Which describes how people in Mesopotamia lived before city-states were developed? A. They lived as nomads. B. They almost all l
    12·1 answer
  • Which artist of the Renaissance was a self-professed sculptor, but was hired to paint the Sistine Chapel, which was a backbreaki
    7·1 answer
  • Mm - mu
    11·1 answer
  • ____________was FDR’s plan to increase government spending to restart the US economy.
    10·1 answer
  • Who was Christopher Columbus?
    15·2 answers
  • Which of these civilizations were the modern-day cities of Puebla and Leon once home to?
    5·1 answer
  • Do the inequalities in our criminal justice system mirror Jim Crow &amp; black codes?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!