Because the United States has a fractional reserve banking structure,banks are allowed to make loans which increase the money supply.

Name: Because the United States has a fractional reserve banking structure,banks are allowed to make loans which increase the money supply.
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With a fractional reserve banking system, banks are only required to hold a fraction of the deposits they receive as reserves. This means that they can create new money by making loans and increasing the overall money supply.

Because the United States Has a Fractional Reserve Banking Structure,banks