How does the banking system create money

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asked Oct 21, 2024 2.3k views

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Jpfreire · Answer 1 · 2024-10-27T16:26:05+0000

Answer:

The banking system creates money through the process of making loans. When a bank makes a loan, it creates a deposit in the borrower’s account, which increases the money supply.

How does the banking system create money

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How does the banking system create money