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The Monetary System
Creating Money
Economics Textbooks Boundless Economics The Monetary System Creating Money
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Economics
Concept Version 6
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Example Transactions Showing How a Bank Can Create Money

Money Creation and Reserve Requirements

Money Creation and Reserve Requirements

The graph shows the total amount of money that can be created with the addition of $100 in reserves, using different reserve requirements as examples.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Fractional-reserve banking with varying reserve requirements."
    http://commons.wikimedia.org/wiki/File:Fractional-reserve_banking_with_varying_reserve_requirements.gif Wikimedia Public domain.

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