Tag: How does this impact the bank’s lending power to make new loans based on Chastity’s deposit?

Money Multiplier’s Impact on the Economy

December 11, 2024
Rose M
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Explain what is meant by the saying banks “create” money, How does this impact the bank's lending power to make new loans based on Chastity’s deposit?, What is the money multiplier's impact on the economy?, what is the simple deposit multiplier?

Explain what is meant by the saying banks “create” money (Hint: watch the meaning of the word, it has a double meaning). If the required reserve ratio from…