TAILIEUCHUNG - Lecture Macroeconomics (19/e) - Chapter 15: Money creation

After reading this chapter, you should be able to: Explain the basics of a bank's balance sheet and discuss why the . banking system is called a "fractional reserve" system, explain the distinction between a bank's actual reserves and its required reserves, describe how a bank can create money, describe the multiple expansion of loans and money by the entire banking system. | Money Creation 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Fractional Reserve System The Goldsmiths Stored gold and gave a receipt Receipts used as money by public Made loans by issuing receipts Characteristics: Banks create money through lending Banks are subject to “panics” LO1 Fractional Reserve System Balance sheet Assets = Liabilities + Net Worth Both sides balance Necessary transactions Create a bank Accept deposits Lend excess reserves LO1 A Single Commercial Bank Transaction #1 Vault cash: cash held by the bank Assets Liabilities and Net Worth Creating a Bank Balance Sheet 1: Wahoo Bank Cash $250,000 Stock Shares $250,000 LO1 A Single Commercial Bank Transaction #2 Acquiring property and equipment Assets Liabilities and Net Worth Acquiring Property and Equipment Balance Sheet 2: Wahoo Bank Cash $10,000 Stock Shares $250,000 Property 240,000 LO1 A Single Commercial Bank Transaction #3 Commercial bank .

• Kinh tế học
• Lecture Macroeconomics
• Kinh tế vĩ mô
• Economic theory
• Money creation
• Fractional reserve system
• Money creating transactions
• Bài giảng Kinh tế vĩ mô
• Science of macroeconomics
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Principles of microeconomics
• Economic models
• Tools of microeconomics
• Microeconomic transactions
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory