Explain the Money Creation Process

question 87

Essay

Explain the money creation process.

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Definitions:

Adjusting Entries

Entries made in the accounting journals to adjust income and expense accounts so that they comply with the accrual concept of accounting.

Note Payable

A written promise to pay a certain amount of money on demand or at a fixed or determinable future time.

Unearned Fees

Income received for services that have not yet been performed or delivered.

Monthly Salary

A fixed amount of payment received by an employee from an employer on a monthly basis.