Assess if the statement below is TRUE (always correct), FALSE (always wrong) or UNCLEAR (meaning correct under some circumstances, wrong under other circumstances to be explicitly defined). In 4 or 5 sentences, provide an explanationand examples/ illustration of why this is the case. Without an explanation or with an explanation that is off topic or with an explanation that shows serious confusion and misunderstanding, you will receive 0 marks, even if your conclusion was correct.

The loan made by an ADI to a non-ADI borrower increases private money at the time of the lending but, in net, decreases private money over the life of the loan.