Ask Question
BusinessBusiness
20 November, 17:36

A commercial bank like Comerica creates money by Group of answer choices making loans. earning profits. printing paper money. selling corporate bonds.

+1
Answers (1)
  1. 20 November, 18:41
    0
    The answer is A. by making loans.

    Explanation:

    Commercial banks don't print paper money (printing paper money is the sole responsibility of Central banks of every country) rather, commercial banks create money by making giving out loans to businesses, individuals or governments.

    Money lent out to borrowers is gotten from deposits from customers. it is known that when banks lend out money (an asset to banks) a new deposit must be sourced from through new deposits from customers (a liability to banks)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A commercial bank like Comerica creates money by Group of answer choices making loans. earning profits. printing paper money. selling ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Equipment was acquired on January 1, 2021, for $30,000 with an estimated four-year life and $3,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $10,300.
Answers (1)
Once a business has saturated the market, it should a. cut back so that there will be room for growth. b. plan on expanding in the same area. c. develop a new product or service. d. all of the above
Answers (1)
At a recent staff meeting, the director of the centerville diagnostic imaging center told the staff, "our clients hate to waste time in a waiting room, and they may go to another center if we don't provide prompt service.
Answers (1)
For many years, General Motors manufactured two versions of the same basic vehicle: the Humvee, used by the U. S. military, and the Hummer, available to the public. Because of this product, GM was part of both the ___ and ___ B2B markets.
Answers (1)
Whether you are dealing with a loan or a credit card, the amount of interest your payment includes each month is known as what? Finance charge Minimum payment Principal Annual percentage rate (APR)
Answers (2)
New Questions in Business
What type of credit is used to lease a building?
Answers (1)
Suppose you transfer $1,000 from your checking account to your savings account. how does this action affect the m1 and m2 money supplies?
Answers (1)
An author just signed a lucrative contract with a publisher that offers to pay her the amount of $600 at the end of year 9 when the book is scheduled to be released.
Answers (1)
When you delete an e-mail in Gmail, where is it moved to?
Answers (2)
The sequencing of activities is often based upon dependencies between the activities. The dependencies that should guide activity sequencing can be either: a. critical or non-critical b. opportunities or threats c.
Answers (1)
Home » Business » A commercial bank like Comerica creates money by Group of answer choices making loans. earning profits. printing paper money. selling corporate bonds.
Sign Up Forgot Password?