Banking/Tutorials: Difference between revisions
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imported>Nick Gardner (New page: {{subpages}} ==Money creation by fractional-reserve banking==) |
imported>Nick Gardner No edit summary |
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{{subpages}} | <nowiki>Insert non-formatted text here</nowiki>{{subpages}} | ||
==Money creation by fractional-reserve banking== | ==Money creation by fractional-reserve banking== | ||
:::{|class = "wikitable" | |||
!Transaction | |||
!Deposit | |||
!Reserve | |||
!Loan | |||
!Available money | |||
!''Algebra'' | |||
|- | |||
| | |||
| | |||
| | |||
| | |||
| 1000 | |||
| P | |||
|- | |||
| First | |||
|1000 | |||
|100 | |||
|900 | |||
|1900 | |||
| P+Pr | |||
|- | |||
| Second | |||
|900 | |||
|90 | |||
|810 | |||
|2710 | |||
|P+Pr+Pr<sup>2</sup> | |||
|- | |||
| Third | |||
|810 | |||
|81 | |||
|729 | |||
|3439 | |||
|P+Pr+Pr<sup>2</sup>+Pr<sup>3</sup> | |||
|- | |||
| Infinite number | |||
| | |||
| | |||
| | |||
| 10,000 | |||
|P/(1+r) | |||
|} |
Revision as of 05:43, 6 November 2008
Insert non-formatted text here
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)