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The money multiplier theory presents the process of creating business financial institution money like a several (better than 1) of the level of foundation money made with the nation's central lender, the many by itself getting a perform from the legal regulation of banking companies imposed by financial regulators (e.g., opportunity reserve prerequisites) beside the small business policies of business banking institutions plus the preferences of homes - components which the central financial institution can affect, but not Manage absolutely.

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Financial educators really need to recognize that numerous socioeconomic things impact Each individual participant's financial problem Which just one method of financial education is hence ineffective.

changing the interest level at which the central lender loans money to (or borrows money from) the industrial banks

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