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Question: c1 deep understanding and critical writing for each of...

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C1 - Deep understanding and critical writing

For each of the statement below, assess whether the statement is TRUE,  FALSE or UNCLEAR. Provide an explanation  with illustration and/or example of why this is the case. Make explicit any assumption or mechanism that is embedded in the argumentation. Without an explanation  or with an explanation that is off topic, you will receive 0 mark.  


(a) An item held as an asset by an entity is the liability or equity of another entity.

                                                                                                                                                        (3 marks)

(b)  Banks can create money through their expenses.

(3 marks)

(c)  If an individual gives a loan to another individual, the process is direct finance.

(3 marks)

(d) Securitizing loans brings bank deposits to the originator.

(3 marks) 

Answer in the box below. The expected length for each answer is approximately 4 to 5 sentences.


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