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When are bank deposits created?
When businesses pay wages and salaries to employees
When the government printing office receives an order for new paper currency or coins from the
Treasury
When commercial banks make loans
When consumers write checks to pay for purchases
Solution
Option C is correct
When commercial banks make loans.
A commercial Bank is a financial institution who accepts deposits, offers account services, make
business etc.
Commercial banks make money or bank deposits by providing loans and earning interest income
from those loans.

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