In essence, which of the following groups "creates" money?
A)banks' loan officers when they grant loans
B)consumers when they go shopping
C)depositors when they deposit or withdraw money from their banks
D)firms when they pay workers their wages and salaries

Question

Quizplus · Accepted Answer

Banks create money through the process of granting loans, as they generate new deposits in the banking system, effectively increasing the money supply.

In Essence, Which of the Following Groups "Creates" Money