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What is money creation nd its …

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What is money creation nd its process

Posted by Simran Sachdeva 5 years, 4 months ago

CBSE > Class 12 > Economics

1 answers

Sonu Chand 5 years, 4 months ago

The process of money creation can be illustrated with the following example in the United States: Corporation A deposits $100,000 into Bank of America. Bank of America keeps $10,000 as reserves at the Federal Reserve. To make a profit, Bank of America loans the remaining $90,000 to the federal government.

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