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Banking




Credit Money


The component of the money supply in an economy which consists of bank deposits.  In other words, it is the money created by a private banking system against private debt. A central bank (or monetary authority) has little or no control over inside money, though, in theory, it can change the amount of cash (outside money) and directly affect reserve positions of banks in addition to their loans and deposits. In most countries, central banks impose on bank deposits a minimum level of required cash reserves.

Credit money is also known as inside money.



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Banking is an integral part of the modern financial system and plays an important role in an economy. It basically involves the so-called intermediation (e.g., ...
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