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Banks can create money, but not destroy money. True False?
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- DoILiveInOzLv 56 years agoFavorite Answer
False they can "destroy" money if they make bad loans or loans get payed back.
- EdwardLv 76 years ago
False. Money is 'created' at A Mint. Not sure about destroying money, seems like a Treasury Department job.
- socialistpbLv 66 years ago
Banks cannot create money: they just lend money that has been deposited with them. If banks could really create money, they would never need to ask for bail-outs.
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