214 Outcome: Lending and Money Creation

What you’ll learn to do: understand how money is created by lending

In this section, you will see how banks can actually create money through loans.

The specific things you’ll learn in this section include:

Calculate the lending capacity of a bank given its deposits and a required reserve ratio

LEARNING ACTIVITIES

The learning activities for this section include:

Reading: How Banks Create Money
Reading: Money Creation
Video: Creating Money
Self Check: Lending, Money, and Banks

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.

License

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ACC Principles of Macroeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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