McqMate
Q. |
Bank money refers to - |
A. | currency notes |
B. | coins |
C. | gold bullions |
D. | cheques |
Answer» D. cheques | |
Explanation: There are two types of money in a fractional-reserve banking system, currency originally issued by the central bank, and hank deposits at commercial banks: (1) central bank money (all money created by the central bank regardless of its form, e.g. banknotes, coins, electronic money): and (2) commercial bank money (money created in the banking system through borrowing and lending) - sometimes referred to as chequebook money. |
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