Solution-Making loans or buying financial securities

Making loans or buying financial securities

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Reference no: EM131405310

"A commercial bank creates money "out of thin air" by making loans or buying financial securities". Briefly explain how. What limits a bank's ability to create money, ie why can't a bank create unlimited amounts of money?

Reference no: EM131405310

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Making loans or buying financial securities : "A commercial bank creates money "out of thin air" by making loans or buying financial securities". Briefly explain how. What limits a bank's ability to create money, ie why can't a bank create unlimited amounts of money?

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Making loans or buying financial securities

Reference no: EM131405310

Reference no: EM131405310

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