Share on Facebook Share on Twitter Comment on this quote Share via Email Print this Page [1-2] of 2 Federal Reserve Bank of New York quotesFederal Reserve Bank of New York QuotesFederal Reserve Bank of New York Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU.~ Federal Reserve Bank of New York Because of 'fractional' reserve system, banks, as a whole, can expand our money supply several times, by making loans and investments.~ Federal Reserve Bank of New York Share on Facebook Tweet Email Print