When an individual deposits a check at the local bank, the bank's reserves increase. the bank can use most of those reserves to make __. this _ the money supply.

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mariaisabelmi3053 mariaisabelmi3053

18-08-2022
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When an individual deposits a check at the local bank, the bank's reserves increase. the bank can use most of those reserves to make __. this _ the money supply.

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Tutorconsortium363 Tutorconsortium363 · Answer 1 · 2022-08-24T19:53:49+02:00

The bank will keep some of it on hand as required reserves, but it will loan the excess reserves out. When that loan is made, it increases the money supply.

What are deposits in banks?

A deposit is money you put into your bank account. You should deposit money in a bank to create savings and earn interest on it. A demand deposit is made for funds you can withdraw anytime. A time deposit is a long-term investment. A deposit could also be the collateral amount you pay when you take on a loan.

To learn more about bank account visit the link

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When an individual deposits a check at the local bank, the bank's reserves increase. the bank can use most of those reserves to make ________. this _______ the money supply.

Respuesta :

What are deposits in banks?

Otras preguntas

When an individual deposits a check at the local bank, the bank's reserves increase. the bank can use most of those reserves to make __. this _ the money supply.