It is said that financial institutions create money when they make loans to firms and individuals. Explain

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It is said that financial institutions “create” money when they make loans to firms and individuals. Explain what this means.

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Business

ISBN: 978-0324829556

10th Edition

Authors: Willian M Pride, Robert J. Hughes, Jack R Kapoor

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Question Posted: Aug 15, 2012 04:41 AM

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It is said that financial institutions create money when they make loans to firms and individuals. Explain

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By making loans to firms and individuals the institutions can ...View the full answer

Business

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