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Concept Version 6
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The Money Multiplier in Theory

Money Creation and the Money Multiplier

Money Creation and the Money Multiplier

The graph shows the theoretical amount of money that can be created with different reserve requirements.

Source

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

    "Fractional reserve lending varyingrates 100base."
    http://en.wikipedia.org/wiki/File:Fractional_reserve_lending_varyingrates_100base.jpg Wikipedia Public domain.

Related Terms

  • money multiplier
  • central bank
  • commercial bank
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