Do banks recycle money

Yes, banks do recycle money through a process known as fractional reserve banking. They accept deposits from customers and are required to keep a fraction of those deposits as reserves, while the remainder can be lent out to borrowers. This process allows banks to create new loans, effectively "recycling" the money and increasing the overall money supply in the economy. However, the original depositors still have access to their funds, creating a cycle of money flow.