Banking/Tutorials: Difference between revisions
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Revision as of 06:33, 6 November 2008
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Money creation by fractional-reserve banking
Transaction Deposit Reserve Loan Available money Algebra 1000 P First 1000 100 900 1900 P+Pr Second 900 90 810 2710 P+Pr+Pr2 Third 810 81 729 3439 P+Pr+Pr2+Pr3 Infinite number 10,000 P/(1-r)