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The Monetary System
Creating Money
Economics Textbooks Boundless Economics The Monetary System Creating Money
Economics Textbooks Boundless Economics The Monetary System
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Economics Textbooks
Economics
Concept Version 8
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The Fractional Reserve System

Money Creation in a Fractional Reserve System

Money Creation in a Fractional Reserve System

The diagram shows the process through which commercial banks create money by issuing loans.

Source

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

    "Money-creation."
    http://en.wikipedia.org/wiki/File:Money-creation.gif Wikipedia CC BY-SA.

Related Terms

  • deposit
  • reserves
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