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A child sees someone hide a small toy in a tiny room.Now the task is to find the larger toy in the full-sized room.Young children might or might not find it,depending on how someone words the instructions.
Money Multiplier
The ratio of the amount of money created by the banking system through loans and deposits to the amount of money injected into the economy by the central bank.
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.
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