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Initial deposit 1000 - PowerPoint PPT Presentation

Process of Multiple Deposit Creation in a Fractional Reserve Banking System

Process of Multiple Deposit Creation in a Fractional Reserve Banking System. Assumptions. 1. Fractional reserve system Minimum reserve ratio / legal reserve ratio e.g. 20% of the total deposits. Banks do not hold excess reserves. Assumptions.

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Initial deposit 1000 - PowerPoint PPT Presentation

Process of Multiple Deposit Creation in a Fractional Reserve Banking System