Generally speaking, you100000 bought a house. You have used this currency, and you have no money, but you have a mortgage loan of100000, which is equivalent to 200000, but100000 is in kind, and100000 is derivative, and the company uses bills as discount loans and so on. People created by this social currency are all rich people, hehe, ordinary people know less and use less. If you are not a scholar, you can probably know the initial deposit: usually cash. Derived deposit: a deposit derived from the original deposit and generated by the transfer of loans. (generally do not increase the reserve of the banking system). 1. Money supply refers to the process of a country's banking system investing, creating, expanding (or contracting) money into the economy in a certain period of time. 2. Under the modern credit currency system, the process of money supply generally involves four actors: the central bank, commercial banks, depositors and borrowers. Among them, the banking system plays a decisive role in the money supply process. The currency in circulation is supplied by banks, and the money supply is closely related to the assets and liabilities of the central bank and commercial banks. 3. Under the financial system of the central bank system, money supply is injected into circulation through the creation of base money by the central bank and deposits from commercial banks. This supply process has three characteristics: ① the main body of money supply is the central bank and commercial banks; (2) The two subjects create their own currencies. That is, the central bank creates cash currency and commercial banks create deposit currency; ③ Non-bank financial institutions have an important influence on the money supply. 4. The money supply process of the banking system must meet three basic conditions: ① the complete circulation of credit money; (2) Implementing the deposit reserve system; ③ Non-cash settlement is widely used. 5. The process of money supply can be divided into two links: ① the basic money supply provided by the central bank; ② Commercial banks create deposit currency. 6. The base money provided by the central bank goes out through its asset business, generally through three channels: ① buying and selling foreign exchange gold in the foreign exchange market and exchanging reserve assets; (2) buying and selling government bonds in the open market and changing the creditor's rights to the government; (three) the commercial bank rediscounts or reloans, and the creditor's rights of financial institutions change. 7. The base currency refers to the sum of the currency held by the public in the circulation field and the reserves of the banking system. As the foundation of deposit expansion and money creation in the whole banking system, its quantity has a decisive influence on the total money supply. Base currency = cash+deposit reserve in banking system. 8. The increase of the central bank's creditor's rights to commercial banks means that the assets rediscounted or re-loaned by the central bank increase, indicating that the base money injected into circulation through commercial banks increases, which will lead to the doubling of the money supply. On the contrary, if the central bank's creditor's rights to commercial banks are reduced, it means that the central bank has reduced its rediscount or re-loan assets, and the money supply will surely shrink sharply. 9. Currency multiplier refers to the multiple relationship between the money supply and the base currency. In the process of money supply, there is an objective effect or reaction of several times expansion (or contraction) between the initial amount of money provided by the central bank and the final amount of social money, which is called multiplier effect. 10. The currency multiplier is mainly determined by the currency deposit ratio and the reserve deposit ratio. Money deposit ratio is the ratio of cash in circulation to demand deposits in commercial banks. Its change in turn affects the change of money supply. The higher the money deposit ratio, the smaller the money multiplier. The lower the money deposit ratio, the greater the money multiplier. The deposit reserve ratio is the ratio of total reserves held by commercial banks to deposits, and the deposit reserve ratio also changes inversely with the currency multiplier. 1 1. The endogeneity of money supply means that the money supply is difficult to be directly controlled by the central bank, but is determined by all economic entities in the economic system. The externality of money supply means that money supply can be directly controlled by the central bank outside the economic system. 12. At present, the money supply in China has the characteristics of both market economy and transitional economy, which makes the exogenous and endogenous money supply coexist. Generally speaking, the central bank still has a strong control over the money supply, but at the same time, with the deepening of reform and opening up, the endogeneity of the money supply is also increasing. Master, help!