2. Which of the following statements BEST describes the operation of banks?
A. Banks take in deposits, for which they pay a
relatively small rate of interest; they then hold a
small amount aside and loan out the rest at a
higher rate of interest.
B. Banks borrow money from the government at
low interest rates, and they loan that money to
customers at higher interest rates.
C. Banks, under license from the government, print
money that they then loan out to businesses and
households.
D. Banks take in deposits, which they use to pay
their employees and other costs.