Every time a bank calls in a loan,demand deposits are created.

Name: Every time a bank calls in a loan,demand deposits are created.
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When a bank calls in a loan, it reduces the amount of money it has loaned out, and therefore does not create demand deposits. Demand deposits are created when a bank accepts a deposit from a customer, which increases the bank's reserve and allows it to create new loans and therefore create demand deposits.

Every Time a Bank Calls in a Loan,demand Deposits Are