The banking system can create money only dollar for dollar with the amount of excess reserves in the banking system.

Name: The banking system can create money only dollar for dollar with the amount of excess reserves in the banking system.
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The banking system can create money through the process of fractional reserve banking, which allows banks to lend out a portion of their deposits while keeping a fraction as reserves, thereby creating more money than the initial amount of excess reserves.

The Banking System Can Create Money Only Dollar for Dollar