[简答题]Expansion of Money by Banks
Banks are permitted to create money out of "multiple expansion of bank deposits." They generate about five dollars of new money for every dollar of reserves. Let us suppose that a person brings $100 into a bank for deposit. If the bank were to hold 100 percent reserves, it would keep the total amount in the vault. However, as we have learned, the law requires that only a small percentage be kept. Let us assume the amount required at this time is 20 percent. With the $80 that does not have to be deposited with the Federal Reserve, the bank may buy government bonds and lend the money, thus assisting business expansion, making mortgages on property, and the like. Note that the depositor still has $100 in the bank, but the bank, in turn, has created $80 of new money by lending it.
The person who borrowed the $80 will probably deposit some or all of the money in the same bank or in some other bank: what is not deposited immediately
[填空题]Development banks are international lending groups. They lend money to developing countries to help fuel economic growth and social (36) . They are not part of the World Bank, the International (37) Fund or the United Nations. The money comes from member countries and borrowing on world markets.
Development banks provide long-term loans at market (38) . They provide even longer-term loans at below-market interest rates. These banks also provide technical (39) and (40) .
There are four main ones. The oldest is the Inter-American Development Bank in Washington, D.C. It began in 1959. President Juscelino Kubitschek of Brazil had (41) a bank to aid economic growth in the Americas. The (42) of American States agreed. Today the bank is worth over 100,000 million dollars. It holds only 4 percent of that. The other money is (43) by its members. (44) . 26 countries in Latin America and the Caribbean b
