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Banks create money when they:

A.
collect interest on loans to the public
B.
buy government securities from the Federal Reserve
C.
allow customers to transfer money from time accounts to demand accounts
D.
loan excess reserves to the public
Macroeconomics
AP
College Board
Exam No：AP Macroeconomics Problem Set 5 Year：2024 Question No：APMacroeconomics2024AP0090

Answer:

D

Knowledge points:

4.4 Banking and the Expansion of the Money Supply

Solution:

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