Send a Quote Enter a brief message. SendOk2 “The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money.” ~ Federal Reserve Bank of Chicago Source: Modern Money Mechanics, p.3 (1961,1971,1992), Modern Money Mechanics is a booklet produced and distributed free by the Public Information Center of the Federal Reserve Bank of Chicago. On back cover: "This publication was originally written by Dorothy M. Nichols in May 1961. The June 1992 revision was prepared by Anne Marie L. Gonczy. Revised May 1968, September 1971, June 1975, October 1982, June 1992."see http://liberty-tree.ca/research/Modern.Money.Mechanics