Keyword: money multiplier
Money Multiplier (11/2/2011)
The creation process of money in a fractional-reserve banking system.
Keywords: fractional reserve system, money multiplier, reserve ratio
Money multiplier (transcript) (11/18/2010)
In a fractional reserve banking system, the Central Bank needs to print only a fraction of the total money supply. This fraction depends on the average circulation needs of the banking customers. The rest of the money supply could be created by banks through loans.
Keywords: Central Bank, demand deposits, excess reserves, Federal Reserve, fractional reserves, fractional-reserve banking, loans, money, money multiplier, required reserves, reserves