With regard to creating money,

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Commercial banks can create money when they lend out funds borrowed from another customer who invested in a time deposit. This is known as the fractional reserve banking system. The bank is only required to hold a fraction of the deposits as reserves and can lend out the remaining funds, effectively creating new money in the economy. However, this process is tightly regulated by central banks such as the Federal Reserve, which sets reserve requirements to ensure that banks maintain a certain level of safety and stability.

With Regard to Creating Money