Could Someone Please Explain the Money Supply?

[kyleb]

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This is not quite correct. If they have $10k on hand, they can make loans for $100k.

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Does the money just exist in a checking account?

The part I don't understand is... uh. New money just exists because the banks say it does (on the balance sheet)? Is that right?

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Sounds pretty [censored] ridiculous, doesn't it?