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Paraphrasing requires that a
Money Multiplier
The ratio of the amount of deposits created by banks to the amount of the central bank's monetary base that has been injected into the economy.
100-percent-reserve Banking
A banking system in which banks keep the full amount of their depositors' funds in reserve, meaning they do not loan out any of the deposits but instead hold 100% of deposited money.
Money Supply
The total amount of currency and monetary assets within an economy at a specific time.
Reserve Requirements
Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.
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