If banks do not hold excess reserves, the multiple deposit expansion process ends when

Name: If banks do not hold excess reserves, the multiple deposit expansion process ends when
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The multiple deposit expansion process in the banking system ends when all excess reserves have been loaned out and thus have been eliminated. This is because banks can no longer extend new loans without additional reserves, halting the process of money creation through the fractional reserve banking system.

If Banks Do Not Hold Excess Reserves, the Multiple Deposit