Economics (McConnell), 18th EditionChapter 32:
Money CreationIN THIS CHAPTER YOU WILL LEARN: - Why the U.S. banking system is called a "fractional reserve" system.
- The distinction between a bank's actual reserves and its required reserves.
- How a bank can create money through granting loans.
- About the multiple expansion of loans and money by the entire banking system.
- What the monetary multiplier is and how to calculate it.
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