eli5 how new money is created in USA

Question

I read somewhere that money is created through lending in America, and did some googling and chating with GPT. I still have a hard time understanding how money is created by banks through lending. Somehow when a new loan is made, an equal an opposite liability is made and the Reserve creates that additional money?
Does this mean that when I get a new line of credit, that new money is created? Can someone clarify how new money is created here?

In: 2

Answer 1

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