Does a method create it's own scope?

gistfile1.rb

#If you define a method does it create a scope within itself? Don't any variables or methods used within a method need to be passed in as arguments?

#Here's an example

name = "Frank"

def say_hello(n)
  def hello_method
  "hello"
end
  puts hello_method + " #{n}"
end

def hello_again(n)
  puts hello_method + " #{n}"
end

say_hello(name)
hello_again(name)