The Brown Market

Modern Money Mechanics

A Workbook on Bank Reserves and Deposit Expansion

by: Federal Reserve Bank of Chicago

The purpose of this booklet is to desmmbeth e basic

process of money creation in a ~actionarle serve" banking

system. l7ze approach taken illustrates the changes

in bank balance sheets that occur when deposits in banks

change as a result of monetary action by the Federal

Reserve System - the central bank of the United States.

The relationships shown are based on simplil5ring

assumptions.

Download Here