Banks Create Money When They Make Loans

question 9

True/False

Banks create money when they make loans.

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Definitions:

Causal Relationship

A connection between two variables where a change in one directly induces a change in the other.

Grilled-cheese Sandwiches

A type of sandwich generally made with cheese between slices of bread, which is then heated until the bread crisps and the cheese melts.

Asthma

A chronic respiratory condition characterized by episodes of airway constriction, leading to wheezing, shortness of breath, chest tightness, and coughing.

Catastrophic Thinking

A cognitive distortion involving irrational thoughts that something is far worse than it actually is.