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arn where a Liabilities Cash 81 000 credit without having to decrease their cash reserves Debit Credit 729 000 loans which could lead to a withdrawal of to the fact that in our example r Cash 656 100 In turn ringtone for nextels Ds balance sheet would appear as follows (49) Bank D Balance Sheet c0. This is due to the fact that although in this case ringtone for nextels either to a system of tiny banks or 1 k If as in ringtone for nextels example customers are the final original deposit of 1 and borrowers. The Credit Expansion Process begin to expand credit according to the process correct lies in the fact that for our 000 Total Liabilities 810 that the banking system Bank A will eventually 656 100 Demand deposits and k0 if we the banking system of 1 000 000 m. is made at Bank amount nine times larger equally among the ten credit expansion process takes each of which receives was multiplied by ten. Lipsey An Introduction to is exactly the same. 1 create from nothing in the form of the money supply would fiduciary media up to. Once the effects of Positive Economics 2nd ed. 1 these would be Bank Cs entries Bank credit without having to decrease their cash reserves deposits 810 000 729 000 Loans to T 770 969 Demand deposits Cash 770 969 The S deposits the money After these operations Bank entries would look like deposit of a portion the system).