What you’ll learn to do: understand how money is created by lending

In this section, you will see how banks can actually create money through loans.

The specific things you’ll learn in this section include:

• Calculate the lending capacity of a bank given its deposits and a required reserve ratio

LEARNING ACTIVITIES

The learning activities for this section include:

• Reading: How Banks Create Money
• Reading: Money Creation
• Video: Creating Money
• Self Check: Lending, Money, and Banks

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.