1. CHAPTER 8 The Power of Financial Institutions to Create Money
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2. Exhibit 8-1 First National Bank’s Initial Balance Sheet: How Much Can it Lend?
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3. Exhibit 8-2 Required Reserve Ratio
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4. Exhibit 8-3 Total Reserves, Required Reserves, and Excess Reserves
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5. Exhibit 8-4 $300 Million Loan to Alice Atwood
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6. Exhibit 8-5 Effect on M2 of a $300 Million Cash Loan
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7. Exhibit 8-6 Changes in First National’s Balance Sheet Due to a Cash Loan
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8. Exhibit 8-7 First National Bank’s Balance Sheet after the Cash Loan
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9. Exhibit 8-8 First National’s Excess Reserves after the Cash Loan
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10. Exhibit 8-9 Balance Sheet Changes for Loans Made with Checking Accounts
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11. Exhibit 8-10 Bart Brewster Deposits Check in Second National Bank
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12. Exhibit 8-11 Check Clears From Second National Bank to First National Bank
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13. Exhibit 8-12 Summary of Changes in First National Bank’s Balance Sheet
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14. Exhibit 8-13 Calculation of First National Bank’s Excess Reserves after the Loan is Made, Funds are Spent, and Check is Cleared
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15. Exhibit 8-14 Effect on M2 of a $300 Loan Paid in Checking Account Form
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16. Exhibit 8-15 Effect of Brewster's Deposit on Second National Bank
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17. Exhibit 8-16 Second National’s Excess Reserves after Brewster’s Deposit
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18. Exhibit 8-17 Changes in Third National’s Balance Sheet after Durrant’s Deposit
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19. Exhibit 8-18 Third National’s Excess Reserves after Durrant’s Deposit
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20. Exhibit 8-19 Lend-Spend-Deposit Cycle
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21. Exhibit 8-20 Checking-Deposit Multiplier: Power of the Banking System to Create Money
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22. Exhibit 8-21 U.S. Checking-Deposit Multiplier, January 1990-April 2013
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23. Exhibit 8-22 M1, the Monetary Base, and the Checking-Deposit Multiplier
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24. Exhibit 8-23 Two Ways to Define the M2 Money Supply
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25. Exhibit 8-24 M2, the Monetary Base, and the Checking-Deposit-And-Near-Money-Deposit Multiplier
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26. Exhibit 8-25 Effects on the Banking System’s Lending Ability When 100% of a Loan is Held as Currency in Circulation
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27. Exhibit 8-26 Effects on the Banking System’s Lending Ability When 100% of a Loan is Held as Currency in Circulation
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28. Exhibit 8-27 Effects Of Customary Reserves on the Banking System’s Lending Ability
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29. Exhibit 8-28 Excess Reserves of U. S
Exhibit 8-28 Excess Reserves of U.S. Depository Institutions: January 1981-May 2013
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30. Exhibit 8-29 Effects of Near-Money Deposit on the Banking System’s Lending Ability: First-And Second-Round Effects
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31. Exhibit 8-30 Effect of Near-Money Deposits on the Banking System’s Lending Ability: Multiple Rounds of the Lend-Spend-Deposit Cycle
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32. Exhibit 8-31 Major Factors Affecting the M1 And M2 Money Multipliers and Their Qualitative Relationships
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33. Exhibit 8-32 U.S. M2 Money Multiplier, January 1990 - April 2013
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