Bankers' business decisions effect the money supply because bankers

Question

Quizplus · Accepted Answer

Bankers have the ability to create money through the process of fractional reserve banking. When they lend out a portion of their deposits, they are effectively creating new money in the economy. This can have a significant impact on the money supply, as it can increase or decrease depending on the lending decisions of bankers. The other choices are not accurate, as being respected or using a special accounting system does not necessarily have a direct impact on the money supply.

Bankers' Business Decisions Effect the Money Supply Because Bankers