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Chapter 13: Money Creation
The Fractional Reserve System
Money-Creating Transactions of a Commercial Bank
Multiple-Deposit Expansion
- Illustration the idea: the Goldsmiths
- Characteristics of fractional reserve banking
Money-Creating Transactions of a Commercial Bank
- Granting a loan
- Buying government securities
- Profits, liquidity and the Federal Funds Market
Multiple-Deposit Expansion
- The banking system's lending potential
- The money multiplier
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, Mar 3 2008, 8:17 AM EST
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Moved from: Macroeconomics Unit III - The Financial Sector
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