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Modeling the Textbook Fractional Reserve Banking System.

Modeling the Textbook Fractional Reserve Banking System. Jacky Mallett jmallett@ieee.org. Fractional Reserve Banking. Quantity of Loans banks make is a function of their deposits. Physical money is deposited at banks Loans create additional bank deposits (money)

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M2 percentage - PowerPoint PPT Presentation

Modeling the Textbook Fractional Reserve Banking System.