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Card 1 of 26

Why can commercial bank lending increase the total money supply?

A

Deposit insurance is when commercial banks make loans that become new deposits.

B

Credit creation is when commercial banks make loans that become new deposits.

C

Credit destruction is when commercial banks make loans that become new deposits.

D

Liquidity preference is when commercial banks make loans that become new deposits.

Card 1 of 26

9.4.5 causes of changes in the money supply in an open economy Flashcards

  1. Intl A Level
  2. /Economics
  3. /9.4.5 causes of changes in the money supply in an open economy

26 flashcards on CIE Intl A Level Economics 9.4.5 causes of changes in the money supply in an open economy: the key terms and definitions you need to recall.

Flashcards