banks cant actually print new money, but they do increase the overall money supply in the economy. describe…

Brief Explanations:

Banks increase the money - supply through the process of fractional - reserve banking. When customers deposit money in a bank, the bank is required to hold only a fraction of these deposits as reserves (reserve requirement). The remaining amount can be loaned out. When a bank makes a loan, the money is credited to the borrower's account, effectively creating new money in the economy. This new money can then be spent, and the recipient of the spending may deposit it in another bank, which can again loan out a fraction of it, further increasing the money supply.

Answer:

Banks increase the money supply through fractional - reserve banking. They hold a fraction of deposits as reserves and loan out the rest. When loans are made, new money is created as the loan amount is credited to the borrower's account, and this process can be repeated as the money is redeposited and loaned out again.