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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 Bank of Canada control the money supply or is there a more basic reason?


Definitions:

Repetitive Processes

Processes that are characterized by the repeated production or execution of the same operation or sequence of operations.

Job Shop Layout

An arrangement of resources in a manufacturing operation where similar machines or functions are grouped together to manage varied products or jobs in small batches.

Classic Assembly Lines

Production methods where a product is assembled in a sequential manner by passing through various stations, each adding specific components or value.

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