Banks create money through contracts with the government to mint bills and coins.

Name: Banks create money through contracts with the government to mint bills and coins.
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Question

Quizplus · Accepted Answer

Banks do not create money through contracts with the government to mint bills and coins. The government is responsible for minting currency, while banks create money through the process of fractional reserve banking, where they make loans and create deposits, effectively increasing the money supply.

Banks Create Money Through Contracts with the Government to Mint