Which statement is true about banks and the money supply?

A bank decreases the money supply when it gives out a loan.

A bank increases the money supply when it gives out a loan.

A single bank cannot have an impact on the money supply.

A single bank can impact the money supply by charging tax.

A bank increases money supply giving away loans

Explanation:

A bank will increase their money supply when they offer a loan to it's customers. This is because the bank will charge a fee, called an interest when the borrower  returns the money. The bank may have preset installments on which the borrower may pay back with corresponding interest rates.

Typically, the lower the interest rates the longer the period for returning the money is. This is more attractive to the borrower since paying back smaller amounts is manageable with lower fees. This method, however, collects more money in the end in favor of the bank.

By making more loans available the bank is able to make more money.

the purpose of the heading in the passage is to identify who is telling the story.

this excerpt is part of the book sugar changed the world (2010) written by marc aronson and marina budhos. as the book has been written by two people, the heading "marc" indicates that this specific excerpt is being narrated by aronson. in the fragment, marc describes his grandfather's story after hearing it from his cousin. however, there are other excerpts where budhos is the one that tells the story of her family.

aronson and budhos, who are husband and wife in real life, decided to write sugar changed the world when they found out how sugar, which had an important role in slavery and economy, changed their ancestors' lives.