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David Malones New Improved Magic Money Tree Quiz

Banks simply act as middlemen, only lending out the money that savers and investor have deposited with them.
False
True
Don´t Know
Only the government – via the Bank of England or Royal Mint – has the authority to create money, includingcoins,notes and the electronic money in your bank account.
True
False
Don´t Know
Ignoring loans to other financial sector companies, the majority of bank loans are made to businesses, and the remainder to households/consumers.
True
False
Don't Know
New money is created when banks make loans, and existIng money is destroyed when members of the public repay loans.
True
False
Don't Know
0
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