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Why Do Banks Create Money? Do They Create Money to Help

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Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason?


Definitions:

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The quality of being sociable; the ability or willingness to engage in pleasant social interactions.

Leadership Trait

A characteristic that is inherent in leaders, contributing to their ability to lead effectively.

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Relating to or characterized by the art of managing international relations, typically involving negotiation, tact, and strategy.

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Inherent attributes and characteristics that are believed to make an individual predisposed to be an effective leader.

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