A financial institution will think about a automobile loan to a customer ________ and a customer"s checking account to be ________.

You are watching: Which of the following best describes how banks create money?


Suppose you decide to borrow money from an digital peer-to-peer lending site. On the T-account for the lending site for this transactivity, the funds from the investor that chooses to money the loan would be classified as ________, and the loan made to you would be classified as ________.
In an effort to bring lenders and also borrowers together adhering to the financial crisis of 2008, the Federal Reserve made a large amount of brand-new funds easily accessible to financial industries. Any of these new funds that are loaned out by financial institutions would certainly be classified as ________ of the banks.
In an effort to lug lenders and borrowers together adhering to the financial crisis of 2008, the Federal Reserve made a big amount of new funds accessible to financial markets. The Fed expected this to increase the money supply and also the total amount of lfinishing because of the multiplier impact, in which a provided amount of brand-new reserves outcomes in a multiple increase in
According to the quantity concept of money, if the money supply grows at 6%, actual GDP grows at 2%, and also the velocity of money is consistent, then the inflation price will be
Federal Reserve takes to control the money supply and interemainder prices to pursue its macrofinancial plan objectives.

See more: During His Presidency, Andrew Jackson Successfully Established The Spoils System


Using the money demand and also money supply design, an open sector purchase of Treasury securities by the Federal Reserve would cause the equilibrium interemainder rate to
If the Fed raises the interest rate, this will certainly ________ inflation and also ________ actual GDP in the short run.
Suppose the Fed decreases the money supply. In response families and also firms will certainly ________ short term assets and this will certainly drive ________ interest rates
decreases investment spending on machinery, equipment, and also factories, usage spending on long lasting products, and net exports
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