A commercial bank like Comerica creates money by

Question

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Commercial banks like Comerica create money by making loans. When they lend money, they create a deposit in the borrower's account, which is new money in the system. This process is known as credit creation or fractional reserve banking. Banks only need to keep a fraction of the deposit as reserves and can lend out the rest, thus creating new money in the economy. Printing paper money is the job of the central bank, while earning profits and selling corporate bonds are ways for banks to make money but not create new money.

A Commercial Bank Like Comerica Creates Money by