What you’ll learn to do: describe how money is created by lending
In this section, you will see how banks can actually create money through loans. Money that is deposited in a bank is lent out, then a portion of that may be re-deposited elsewhere, then that money will be lent out, and that money re-deposited elsewhere, and so on. This process results in an increase of the money supply.
- Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution
- Money Bands. Authored by: 401k2012. Provided by: Flickr. Located at: https://www.flickr.com/photos/68751915@N05/6355828469/in/photolist-aFDhnt-U3cW4S-3DhPU-snxbdk-R4zbHm-geqQex-8xEuc-PNrwk-7aa8Nc-bYWuc9-UyCCwJ-8z3DAL-aFDiDB-dCLgPD-9smtTG-bmdkbV-cPAAf7-q7baZy-pGd1K-aFAKZi-a5SwX-4do5v-4jKXnb-brcZGM-6y5iw5-5qW8AF-7adVtC-NtsXP-aFANVM-f8BZut-7adWvA-oKPgiL-4gBsv8-NrZG7-m6VUdK-ayZVrf-U3cVTb-nXYWqT-7a1X7V-6h7kTa-9Zkom5-phTWU-6h7kjR-7a5Pgw-68zxeQ-5vwoTZ-3z1RAw-mTMVH8-4xmjfM-98rFnJ. License: CC BY-SA: Attribution-ShareAlike