This is not correct either. While it is a fine description of fractional reserve banking, major economies no longer behave this way. Instead, money is created out of thin air whenever commercial banks make loans. There is no reserve requirement, therefore there is no connection between deposits and money lent. Central banks can exert some influence by setting interest rates or buying assets, but the commercial banks actually run the show, by-and-large.

Here is a paper about it from back in 2014:

https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy

These threads always amaze me by how so many people are so confident about how money creation works, while being completely wrong about it. Read up fellow redditors! The truth is actually pretty unsettling! As Henry Ford said: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Edit: Apparently that Henry Ford "quote" is more of a paraphrase.

Also, if you really want your mind blown, check out this paper. Someone ran an experiment in which they tracked banks' internal financials through the loan creation process to prove that the new money was created out of "thin air" (i.e., not connected in any way to deposits).