Often it is claimed that banks create money by making loans


Often it is claimed that banks create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Often it is claimed that banks create money by making loans
Reference No:- TGS0668094

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)