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SS1: ECONOMICS - 3RD TERM

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  1. Mining | Week 1
    3 Topics
    |
    1 Quiz
  2. Financial Institutions I | Week 2
    7 Topics
    |
    1 Quiz
  3. Financial Institutions II | Week 3
    5 Topics
    |
    1 Quiz
  4. Financial Institutions III | Week 4
    5 Topics
    |
    1 Quiz
  5. Business Organisation | Week 5
    3 Topics
  6. Money | Week 6
    5 Topics
    |
    1 Quiz
  7. Channels of Distribution I | Week 7
    5 Topics
    |
    1 Quiz
  8. Channels of Distribution II | Week 8
    6 Topics
    |
    1 Quiz
  9. Business Finance | Week 9
    7 Topics
    |
    1 Quiz



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Topic Content:

  • Creation of Money by Commercial Banks

The creation of money by commercial banks is also known as “the multiple expansion of bank deposit”. This means that the banking system as a whole can create deposits equal to a multiple of the reserves that it acquires.

Commercial banks accept current deposits which they hold as the base on which they erect their ability to create, it should be noted that a single bank cannot create money unless it is a monopoly bank with branches.

 

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