Credit Creation

or

Money Creation
Or

Money Multiplier iz Barley

2
8 t

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Interest
Regimen Paid
d
Lending Deposits

110003
a
1007 120
It I
Lerette
Reef s

Gedi't Creation
Out of totem deposits relieved
by
commercial bank able to create
they are

far excess of their initial deposits

what lend
Bank can bend than
if
to them
Assumptions
The entire commercial Banking system if
One Unit termed as Bank

made through
recielot payments are
All
bank Only A cheque
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Banking 20187840
put Banking
to
II
phye Deposit Loan Reserves

wgQ.gg 8,00 20

I 640 120
512
I 1

5000 Goto 1080

Money
Multifiner In R
LRR Legal Regen Ratio ER
 eg ex

mm It

In IIe
If LRR has inereded to 50 y

Money
Multiplier Irr
Iot

Fo
 If LRR 507

Phases Deposits Loans Referees

I 1000 soo 500

250
I 500 210
I 250 125 125

I 125 62 5 628