For money creation, whether Mark puts cash in a bank or keeps it in his pocket matters.

Name: For money creation, whether Mark puts cash in a bank or keeps it in his pocket matters.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When Mark puts cash in a bank, the bank has the ability to use that cash to create additional money through lending and other financial activities. If Mark keeps the cash in his pocket, that money cannot be used for money creation by the bank.

For Money Creation, Whether Mark Puts Cash in a Bank