Bank Makes a Loan to a Non-ADI Customer Assignment
February 19th, 2020
Which of the following statements is NOT correct?
When a bank makes a loan to a non-ADI customer,
A. it lends central bank money to the borrower.
B. it creates private money in the financial system.
C. it may lose reserves when the borrower spends the money he/she borrowed.
D. it does not need to destroy private money from a SSU beforehand.Get Finance homework help today