true or false the creation of transaction deposits via new loans is the same thing as...
true or false the creation of transaction deposits via new loans is the same thing as creating money
Homework Answers
True,Money is created when bank lends out to public that is they give loans which increases the transaction in the economy which creates money in the market this is known as fractional reserve banking . Beacuse banks are required to keep some portion of deposits with them and rest of the money they can lend out so a initial sum of money creates more demand and money in the market.
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true or false the creation of transaction deposits via
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