Explain How Current Financial Institutions Can Create $342 Out of a Deposit

question 26

Essay

Explain how current financial institutions can create $342 out of a deposit of $200.

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Definitions:

Accused

An individual who has been charged with a crime or is alleged to have committed a wrongdoing.

Lynch Law

The practice of punishment, often by hanging, carried out by mob action without legal authority, frequently used to control or terrorize African Americans.

Deep South

A term referring to the southernmost region of the United States characterized by its historical dependence on agriculture, particularly cotton, and a history of racial segregation and significant African American population.

Justified

Considered or declared to be right or reasonable under the circumstances, often used in legal, ethical, or moral contexts.