this post was submitted on 06 Jun 2025
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Do Auto Loans increase the money supply? (lemmy.ca)
submitted 3 weeks ago* (last edited 3 weeks ago) by toastmeister@lemmy.ca to c/economics@lemmy.ml
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Do Auto Loans increase the money supply, I cant seem to find a source for it. Its not a question on a test or anything, I was just curious, I'd always figured it was only business loans and mortgages that did so.

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[–] freagle@lemmygrad.ml 3 points 3 weeks ago (1 children)

Fractional reserve banking. Look it up

[–] davel@lemmy.ml 1 points 3 weeks ago* (last edited 3 weeks ago)

US banks don’t even have banking deposit fractional reserve requirements. They do have capital reserve requirements, but those don’t necessarily have to come from customer deposits. And “money multiplier” isn’t how really things work these days, either: https://en.wikipedia.org/wiki/Money_multiplier#Current_monetary_policy