Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 14, Problem 14.3.5PA
To determine

The farms and small businesses.

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What are the financial institutions that make up our banking system? Briefly describe their role and function. Briefly explain the role played by banks between savers and borrowers and the economic benefit, if any, derived from their taking on this role.
“When a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed.” Explain.
Match each of the following players in the financial system with the financial product(s) they are most associated with. Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. Players Financial product Stocks a. Commercial banks 2 Bonds ? Loans Stocks b. Savers Bonds 2 Loans Stocks c. Investment banks Bonds 2 Loans
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