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Explain process of money creation by …

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Explain process of money creation by commercial banks
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Raj Mishra 6 years, 7 months ago

MONEY CREATION, THE PROCESS: The process in which the banking system creates checkable deposits by lending excess reserves. ... The money creation process is a natural feature of fractional-reserve banking that occurs as banks act as both safekeepers of deposits and financial intermediaries making loans.
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