TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

deposit creation [1 record]

Record 1 1981-01-23

English

Subject field(s)
  • Currency and Foreign Exchange
  • Banking
OBS

(...) There is nothing automatic about deposit creation. Four factors are necessary: the banks must somehow receive new reserves; they must be willing to make lawns or buy securities rather than hold new excess reserves; someone must be willing to borrow or to sell securities; and the public must choose to leave its money on deposit with the banks, not depleting them of reserves.

French

Domaine(s)
  • Politique monétaire et marché des changes
  • Banque

Spanish

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