Do Auto Loans increase the money supply? (lemmy.ca)

submitted 3 weeks ago* (last edited 3 weeks ago) by [email protected] to c/[email protected]

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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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[-] [email protected] 3 points 3 weeks ago

Fractional reserve banking. Look it up

[-] [email protected] 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

this post was submitted on 06 Jun 2025

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