Banks Create Money When They Make Loans

question 9

True/False

Banks create money when they make loans.

---

Definitions:

Empirical Statements

Assertions about the world that are verifiable through observation or experience rather than theory or pure logic.

Contingent

Not necessary; could have been otherwise. What we believe (or a state of affairs) is contingent if we can imagine its being other than it is.

Royal Road

Historically, a phrase suggesting a direct and effortless path to a solution or goal; originates from the ancient Persian network of roads facilitating rapid communication.

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.