Money Multiplier
Monetary economics, Money, Monetary base
978-613-9-65265-5
6139652650
108
2012-01-14
39,00 €
eng
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Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system. Most often, it measures the maximum amount of commercial bank money that can be created by a given unit of central bank money. That is, in a fractional-reserve banking system, the total amount of loans that commercial banks are allowed to extend is a multiple of reserves; this multiple is the reciprocal of the reserve ratio, and it is an economic multiplier.
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