Can bankers create money?

Question

Quizplus · Accepted Answer

Bankers have the power to create money through a process called multiple deposit creation. They create new deposits when they lend money, which increases the money supply. Option A and D are incorrect because banks are able to create money under normal circumstances without a special charter. Option C is incorrect because banks do not print physical checks for customers, but rather customers print checks themselves or utilise online banking platforms.

Can Bankers Create Money