Economy, asked by deepanshusaini9667, 7 months ago

Why it is better to take loan instead of issuing currency?

Answers

Answered by BoldBeauty
2

answer :

Governments borrowing money doesn't create new money. When banks "borrow" money (i.e. take deposits), it does effectively create money because the depositor expects to be able to get the money back at any time, but the bank assumes that most won't actually do this and lends out most of the money to other people.

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