14. Banking and the Money Supply

• Banking and the Money Supply
• The Banking Industry
• Asymmetric Information
• Liabilities and Assets
• Bank Deposits
• Monetary Aggregates—M1, M2, and M3
• Liquidity
• Summary of Credit Expansion When Fed Purchases $1,000 Security
• The Process of Money Creation Can be Reversed
• The Money Multiplier
• The Actual Money Multiplier
• Other Means of Expanding the Money Supply