which example best describes how a bank injects money into the economy?\na bank opens a savings account for…
which example best describes how a bank injects money into the economy?\na bank opens a savings account for a customer.\na bank approves a loan for a customer.\na bank buys a company’s rapidly growing stock.\na bank buys property in a bustling business district.
Answer
Brief Explanations:
When a bank approves a loan for a customer, it gives the customer access to funds. The customer can then use these funds for various purposes like starting a business, making purchases etc., which in turn increases the money - supply in the economy. Opening a savings account just moves money from one form of deposit to another. Buying stock or property is an investment by the bank and not a direct way of injecting money into the economy for general circulation.
Answer:
B. A bank approves a loan for a customer.