Banks create money whenever they purchase treasury, Financial Management

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Banks create money whenever they purchase treasury

1. All of the following financial institutions were rescued during the financial crisis except______________.

A) AIG

B) Fannie Mae

C) Bear Stearns

D) Lehman Brothers

2. Banks "create" money whenever they purchase treasury securities being issued for the first time.

A) True B) False

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Financial Management: Banks create money whenever they purchase treasury

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