According to the Federal Reserve banks, and printed in their banking rulebooks, money is created when a person (you) signs a contract (promissory note) with a bank.

The bank sells your note (promissory note or deed) to the Federal Reserve the minute you sign it, and the Fed then gives that bank the amount that it then “loans” to you. Therefore, the bank is at a balance of $0.00 dollars at the point of inception and payment for your loan. Remember, this is how money is “created” according to the Federal Reserve banking rules and regulations.