14
QuizMultiple Choice

The American Market Economy — Test

Question 14 • Economics

Which example best describes how a bank injects money into the economy?

Answer
A
A bank approves a loan for a customer.
B
A bank opens a savings account for a customer.
C
A bank buys a company’s rapidly growing stock.
D
A bank buys property in a bustling business district.

Explanation

When a bank approves and issues a loan, it creates new money in the form of a deposit that the customer can spend. That spending puts money into circulation in the economy. Opening a savings account or buying property or stock generally moves existing money rather than injecting new money.

AI-written and checked against the verified answer.

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