Question

Individuals that lend funds to a bank by opening a checking account are called

 6. Individuals that lend funds to a bank by opening a checking account are called

 A. policyholders

 B. partners

 C. depositors

 D. debt holders


 7. The monetary base consists of

 A) currency in circulation and Federal Reserve notes

 B) currency in circulation and the U.S. Treasury's monetary liabilities

 C) currency in circulation and reserves

 D) reserves and Federal Reserve Notes



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Answer #1

6.
Correct answer is Option C. depositors

Individuals that lend funds to a bank by opening a checking account are called Depositors.

Depositor is a person who make deposit with the bank. Depositor is entitled to get interest on loan.


7.
Correct answer is option C.

The monetary base consists of currency in circulation and reserve.

Monetary base is also reffered as narrow money.

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