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One reason why nations trade is because
Monetary Policy
The process by which a central bank controls the supply of money in an economy, primarily through interest rates, to maintain price stability and achieve high employment.
100-Percent-Reserve Banking
A banking system where banks are required to keep the full amount of each depositor's funds in reserve, meaning they cannot lend out any of the money deposited.
Fractional Reserve Economy
An economic system where banks hold a portion of customers' deposits in reserve and lend out the remainder, thus creating money.
Required Reserve Ratio
The minimum fraction of deposits banks are required by law to keep as reserves, either in their vaults or on deposit at a central bank.
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