3.2 - Commercial Banks
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Practice Questions
Test your understanding with targeted questions
What is a commercial bank?
💡 Hint: Think about where you keep your money.
Name one service provided by commercial banks.
💡 Hint: What do you do with your money at a bank?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What primary function do commercial banks serve?
💡 Hint: Think about what you do with your bank account.
True or False: Commercial banks can create money through credit creation.
💡 Hint: What happens when banks lend money to customers?
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given a reserve requirement of 10%, compute how much money can a bank lend out if it receives a total of $500,000 in deposits.
💡 Hint: Calculate the reserve and subtract it from the total deposits.
Explain how an increase in loans issued by commercial banks could affect inflation in a growing economy.
💡 Hint: Consider the relationship between demand and prices in the economy.
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