Describe how financial institutions create money.

Describes the process of creating money.

Differentiate process of creating money from minting coins or printing bills

Explain how the Federal Reserve System uses government borrowing to create money

Describe at least one other method by which new money can be created by any financial institution.

The major process of creating money is lending money: this will increase the number of money in circulation. Lending can be electronic too, so it does not have to lead to minting coins or printing bills, and it typically doesn't.

The Federal Reserve System often creates money when new government bonds are being issued - bonds are essentially also loans, but when the government borrows money.

Another way of creating money is when the banks buy assets and pay with money for the assets