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A-LevelEconomicsThe macroeconomy9708/33 · May/June 2017 · Q221 Mark

How do commercial banks create money?

  1. (a)How do commercial banks create money? A by cashing cheques for their customers B by increasing their reserves at the central bank C by making loans to customers D by charging customers for banking services[1]

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

  1. [1] Answer: C

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2017 Paper 3 Variant 3, question 22.

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