Why the banks do not really create money

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Banks do not really create money , do they? was the challenge that a retired professor of economis was known to have used in his upper division american economic historic course to ascertain what his students remembered fron introductory macroeconomics about the creation of money. He reported that few students were confident enough or remenbered enough to reply correctly to his question . How would you reply?

Reference no: EM13224853

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