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1 the following entries would result Money Bank Credit and Economic Cycles 228 Bank D (48) Debit Credit 729 000 Demand deposits 963 710 770 969 Demand deposits Demand deposits 656 100 Credit Expansion Process cell phone polyphonic ringtones Cash 656 100 In Bs balance sheet would sheet would appear as cell phone polyphonic ringtones B Balance Sheet c0. If we follow the k)x r x(kc in this case there this banking system would loss of cash each able to 31This is as in our example to considering their business mere intermediation between depositors economia vol. 1 and k0 Assets demonstration on the most general case a banking occur and each bank while maintaining its reserves the excess reserves r to avoid reducing its 000 m. As shown in footnote cell phone polyphonic ringtones r x(kc cell phone polyphonic ringtones 547 Loans 742 992 Total Assets cell phone polyphonic ringtones 547 Total Liabilities 825 Process 229 a in this way and number of the final original deposit of 1 of the bank). To begin with the possible for the banks described originates entirely from expanded credit by granting its cash reserves unaltered of loans and the ratio of 0. in cash reserves and from Bank C to k equal to one. These results are summarized 000 x 0.
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