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What exactly is the simple deposit multiplier

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Reference no: EM133038239

Topic: Banks and Money Bank create money when they issue a loan, but destroy money when a loan is paid back. How so?

  1. What exactly is the simple deposit multiplier?
  2. How do you make people believe the banking system is safe? In the old days it was often done with architecture. Bank buildings were massive buildings with large cement pillars in front? Would you agree or disagree with this statement?

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Reference no: EM133038239

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