Part (b) 'Loans create deposits' rather than traditional thinking that 'deposits create loans'. Explain what this means
Posted: Sun May 08, 2022 10:03 am
- Part B Loans Create Deposits Rather Than Traditional Thinking That Deposits Create Loans Explain What This Means 1 (53.96 KiB) Viewed 20 times
Part (b) 'Loans create deposits' rather than traditional thinking that 'deposits create loans'. Explain what this means and how does lending increase the money supply? (10 marks] Part (c) Discuss the advantages and disadvantages of a central bank being independent of government. (10 Marks] Part (d) Explain why both the Federal Reserve (USA) and the European Central Bank have both 'instrument independence' and 'goal independence'. [4 marks]