Comments on: What is the maximum amount of money that can be created in the banking system by this purchase? http://www.secretfinance.com/blog/what-is-the-maximum-amount-of-money-that-can-be-created-in-the-banking-system-by-this-purchase/ Thu, 09 Feb 2012 07:20:17 +0000 http://wordpress.org/?v=2.7 hourly 1 By: daviline http://www.secretfinance.com/blog/what-is-the-maximum-amount-of-money-that-can-be-created-in-the-banking-system-by-this-purchase/comment-page-1/#comment-2025 daviline Sun, 02 Aug 2009 08:36:12 +0000 http://www.secretfinance.com/blog/what-is-the-maximum-amount-of-money-that-can-be-created-in-the-banking-system-by-this-purchase/#comment-2025 The maximum increase in money supply = (1/.20) 35,000,000= $175,000,000 The maximum increase in money supply = (1/.20) 35,000,000= $175,000,000

]]> By: lennie http://www.secretfinance.com/blog/what-is-the-maximum-amount-of-money-that-can-be-created-in-the-banking-system-by-this-purchase/comment-page-1/#comment-2024 lennie Fri, 31 Jul 2009 15:34:34 +0000 http://www.secretfinance.com/blog/what-is-the-maximum-amount-of-money-that-can-be-created-in-the-banking-system-by-this-purchase/#comment-2024 The maximum amount of money that can be created is (1/0.2) x $35,000,000 = $175,000,000. Just use the required reserve ratio. The maximum amount of money that can be created is (1/0.2) x $35,000,000 = $175,000,000.

Just use the required reserve ratio.

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