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MrMuchimi
3 years ago
15

Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treas

ury notes. reducing risk in the economy.
Business
1 answer:
Butoxors [25]3 years ago
7 0

Answer:

making loans

Explanation:

Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc

Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans

Hence, the first option is correct

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Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. inte
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