The Case of the Gigantic $100,000 Bill
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- The Case of the Gigantic $100,000 Bill
- Reserve Bank
In this lesson, students participate in a demonstration of the money creation process using a large $100,000 bill. Expansions of the money supply caused by successive deposits and loans are traced on the board so that students can observe the process. Students learn to calculate the upper bound of the money creation process using the simple money multiplier.
|money creation, money multiplier, banking, money supply|