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Assets fed res liab - PowerPoint PPT Presentation

Multiply Deposit Creation Big Question: How are deposits/MS created?

Multiply Deposit Creation Big Question: How are deposits/MS created? 4 Players in the Money Supply Process Central Bank (Fed. Res.) Banks (bank deposits are largest component of MS) Depositors Borrowers from banks (loans and bonds) Federal Reserve System Functions:

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Assets fed res liab - PowerPoint PPT Presentation

Multiply Deposit Creation Big Question: How are deposits/MS created?