Looking at how banks create money, tell me how student loans would be part of that process?

see below

Explanation:

Banks create money through accepting deposits and issuing loans. The more deposit a bank accepts, the more loans it can issue, and the more money it creates. The banks are required to maintain a fraction of their deposits are reserves. It means that only a fraction of customer deposits are backed by physical currency at any given time.

When a student requests a loan, the bank does not issue physical cash. Instead, the loan amount is credited to the student's account. The moment the amount is credited, the bank has created money in the economy. Every loan advanced is money created. The loan has originated from a fraction of a deposit. Crediting an account with a loan amount does not require having hard currency. The balance in the account is electric money. Only a fraction of it( reserve ) is backed by hard currency.

the answer is 10c + 6b = 32

step-by-step explanation: