Monetary Policy: Money Creation in a Fractional Reserve Banking System
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YouTubeJason Welker
Monetary Policy: Money Creation in a Fractional Reserve Banking System
In this video we illustrate the process by which money is created in a fractional reserve banking system. Due to the fact that at any given time a bank must only keep a certain percentage of its total deposits on reserve, an initial deposit of a certain amount of money will be multiplied as the bank loans out any excess reserves, whose spending ...
188.5K viewsJan 23, 2012
Money Creation Process
Explain the Process of Money Creation by the Commercial Banks with the Help of a Numerical Example. - Economics | Shaalaa.com
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