Loans create deposits first; banks seek reserves later to meet regulatory minimums.
Transactionary, precautionary, and speculative demands for money. sb gupta monetary economics pdf 182 hot
is not a fixed constant. It depends heavily on public behavior and banking regulations, represented by the currency-deposit ratio ( ) and the reserve-deposit ratio ( Loans create deposits first; banks seek reserves later
: You can find full-text versions and snippets of Suraj B. Gupta's work on the Internet Archive . Loans create deposits first