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Business, 26.03.2020 22:37 msalecora

A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she is wrong. The bank manager is wrong because . A. the more currency her customers deposit, the greater the incentive for the Fed to authorize her bank to create loans B. when her customers deposit currency in the bank, the quantity of money increases by the amount of the new deposit C. every new loan creates a new deposit, and a new deposit is new money D. in addition to loaning out the money that people deposit, she also lends what her bank receives from the Fed

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A bank manager tells you that she doesn't create money. She just lends the money that people deposit...
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