Money is "created" when:

Name: Money is "created" when:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Money is created when banks make loans to their customers, which leads to an increase in the money supply. When people receive loans from banks, this creates new money that did not exist before. Options A and D do not create new money but merely transfer existing money between parties. Option B involves accepting deposits, which does not necessarily lead to the creation of new money.

Money Is "Created" When