Money is created whenA) a bank gives you a $1,000 loan.B) you pay back a $1,000 loan to a bank.C) you write a check for $1,000.D) you deposit $1,000 cash to be deposited in your checking account.E) you cash a check for $1,000 at your bank.

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Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  When a bank provides a loan, it creates new money by adding the loan amount to the borrower's account. This is also known as credit creation. Therefore, when a bank gives you a $1,000 loan, it creates new money.

Money is created when

A) a bank gives you a $1,000 loan.
B) you pay back a $1,000 loan to a bank.
C) you write a check for $1,000.
D) you deposit $1,000 cash to be deposited in your checking account.
E) you cash a check for $1,000 at your bank.

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