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When one bank loans money, that money is generally deposited into another bank. This creates more deposits and more reserves to be lent out. Use
When one bank loans money, that money is generally deposited into another bank. This creates more deposits and more reserves to be lent out. Use the T- Account to demonstrate the credit creation process when the initial deposit of K15,000 is made into the banking system and the reserve ration is 10%. Demonstrate this process upto the 5th Bank
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