Only the federal government can create money.
Money can also be created through the banking system with the money multiplier.

Question

Quizplus · Accepted Answer

While the federal government has the power to create money, money can also be created through the banking system with the money multiplier. When banks create loans, they are effectively creating new money in the economy. This is known as fractional reserve banking, where a bank only needs to keep a fraction of their deposits in reserve and can lend out the rest. The amount of money that banks can create through this process is limited by the reserve requirement set by the central bank.

Only the Federal Government Can Create Money