2.3k views
2 votes
How does the banking system create money


1 Answer

3 votes

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.

User Jpfreire
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.