Money Supply Simulation
Money Creation
Money Multiplier
Federal Reserve Empirical Data
Webinars
Instructional Plan
About/Disclaimer
Central Bank
Required Reserve Ratio (rr):
0%
2%
5%
10%
Private Sector
Assets
Liabil.
Currency Ratio (cc):
0%
2%
5%
10%
Assets
Liabil.
CB Loans
Currency
Currency
Loans
Securities
Req. Reserves
Deposits
Vol. Reserves
Securities
1st Savings Bank
U.S. Loan Bank
Bank Sector
Assets
Liabil.
Assets
Liabil.
Assets
Liabil.
Excess Reserves
Inter Bank Loans
Excess Reserves
Inter Bank Loans
Excess Reserves
Req. Reserves
CB Loans
Req. Reserves
CB Loans
Req. Reserves
CB Loans
Inter Bank Loans
Deposits
Inter Bank Loans
Deposits
Deposits
Securities
Securities
Securities
Loans
Loans
Loans
Period:
Central bank buys securities for $10 working with
Select
1st. Savings
U.S. Loan
.
Both banks originate loans in the amount of their voluntarry reserves