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
Which of the following transactions causes a decrease in stockholders' equity? A. Paying advertising expense for the current month. B. Repaying amount borrowed from the bank. C. Providing services to customers for cash. D.
Answers (1)
Pizza Pie maintains a constant debt-equity ratio of. 55. the firm had net income of $14,800 for the year and paid $12,000 in dividends. the firm has total assets of $248,000. What is the sustainable growth rate? A) 3.38 percentB) 2.27 percentC) 1.
Answers (1)
At green acres fencing company, eight employees each perform various aspects of the company's work. one person does sales, four perform installation; one purchases materials; one does billing; one performs after-sales inspections.
Answers (1)
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X;
Answers (1)
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected
Answers (1)
New Questions in Business
Preferred Stock, 7%, $115 par $1,170,000 Common Stock, $1.50 par 300,000 Paid in capital in excess of par, common stock 1,200,000 Retained earnings 2.500.
Answers (1)
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.
Answers (1)
Department B had a beginning inventory of 2,400 units, 25% completed; an ending inventory of 2,700 units, 2/3 completed, and received 4,900 units during the period from Department A.
Answers (1)
Suppose two paper plants dump industrial waste into a river. The EPA decides pollution concentration is too high at a receptor site down river from the paper plants.
Answers (1)
What is an ineffective practice with regard to building trust within your department?
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?