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October 2, 2014

Homework Help: banks

Posted by Anonymous on Tuesday, December 12, 2006 at 3:39am.

Describe how banks help to eliminate money.

What kind of money are you talking about? Taking paper money out of circulation?

Banks actually create money when they issue checking accounts for people and busineses they grant loans to. They also put a lot of paper money into circulation with ATMs.

You might say that the issuance of credit cards by banks has made most developed countries able to function with less cash in circulation.

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