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
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.