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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349669
Introduction to Economics 2 Deneme Sınavı Sorusu #349669
What is the money in the form of demand deposits created by banks as a result of credit operations?
Electronic money
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Crypto money
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Commodity money
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Deposit money
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Fiat money
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Yanıt Açıklaması:
Bank’s basic business principles and especially the reserves they hold as we try to outline above demonstrate another important function of banks they undertake in the economy: Money creation. In fact banks create money by collecting deposits from people and using them to make loans and investments. This money created in form of demand deposits as a result of banks’ credit transactions is called as deposit money.
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