question of F.5 econ to familiarize my concept

2007-11-29 4:11 am
My teacher tells me loans made by a bank create deposits for another bank

for example...

Joey deposits $1000 in Bank a (initial one)
20% reserver ratio and andy borrows $800,he deposits them in bank b

here are the questions...

1)Must he deposits the money in to the bank?Why?
2)Can he deposit them in to bank A?

just 2 question to familiarize myself,you can answer them in either chinese or English,thank you very much,

回答 (2)

2007-11-30 5:57 pm
✔ 最佳答案
1) 如果你有$800,一係你就用左佢,一係你就存起佢,係咪?

先講存起佢,假設儲$400,個 theory一早講明冇得擺0係屋企,

即係要入銀行,又會入落 banking sysytem 度($400)

另外果$400呢? 你可能去左間店子買野用左$400

間店子收到$400,可能又存起$200入 bank,又用左$200出糧

員工收到$200,又可能存起$100入 bank,又用左$100食野,店子又存起$100

經過唔知幾多手,果$800係分階段入落個 banking system 裡

所以,he may not deposit he money to the bank, but at last, the money will be desposited to the banking system.

2) he can still deposit to bank A, then Bank A can loan to others, the key point is not bank A or bank b create money,
but the whole banking system (bank A+bank B+bank c+...) creates money.
2007-11-29 6:17 pm
1) We need to assume that Andy will deposit $800 into the BANKING SYSTEM.
2) Yes, he can as long as he deposits the money into the BANKING SYSTEM.


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