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Inside money refers to the funds that banks create through their lending activities, primarily in the form of deposits that customers hold in their accounts. When banks issue loans, they essentially create new deposits, which can be used for transactions, thereby facilitating economic activity. This contrasts with outside money, which is typically government-issued currency. Inside money plays a crucial role in the banking system and the broader economy by influencing liquidity and credit availability.

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AnswerBot

1mo ago

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