Banks Create Money When They Make Loans

question 9

True/False

Banks create money when they make loans.

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Definitions:

Government Regulation

The act of controlling business operations, activities, or market entries through laws and rules set by the government to protect public interests.

Economic Expansion

A phase of the business cycle during which the economy grows, characterized by increased output, employment, and consumer spending.

Laissez-faire Approach

An economic philosophy of minimal governmental intervention in the market and the operations of businesses.

Technological Progress

Advances in technology that improve production efficiency, product quality, and innovation across sectors.