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  2. Debits and credits - Wikipedia

    en.wikipedia.org/wiki/Debits_and_credits

    When the cash is deposited to the bank account, two things also change, on the bank side: the bank records an increase in its cash account (debit) and records an increase in its liability to the customer by recording a credit in the customer's account (which is not cash). Note that, technically, the deposit is not a decrease in the cash (asset ...

  3. Double-entry bookkeeping - Wikipedia

    en.wikipedia.org/wiki/Double-entry_bookkeeping

    Assets, Expenses, and Drawings accounts (on the left side of the equation) have a normal balance of debit. Liability, Revenue, and Capital accounts (on the right side of the equation) have a normal balance of credit. On a general ledger, debits are recorded on the left side and credits on the right side for each account. Since the accounts must ...

  4. Money supply - Wikipedia

    en.wikipedia.org/wiki/Money_supply

    They can increase the money supply by purchasing government securities, such as government bonds or treasury bills. This increases the liquidity in the banking system by converting the illiquid securities of commercial banks into liquid deposits at the central bank.

  5. Credit channel - Wikipedia

    en.wikipedia.org/wiki/Credit_Channel

    The bank lending channel is essentially the balance sheet channel as applied to the operations of lending institutions. Monetary policy actions may affect the supply of loanable funds available to banks (i.e. a bank's liabilities), and consequently the total amount of loans they can make (i.e. a bank's assets). [9]

  6. Money creation - Wikipedia

    en.wikipedia.org/wiki/Money_creation

    This process increases bank equity, enabling banks to create commercial bank deposit liabilities (money) for their own use. In this way, banks create and manage their own capital levels. Because accounting conventions define the value of any given asset or liability, bank capital is a subjective measure which many argue is open to manipulation ...

  7. Debt monetization - Wikipedia

    en.wikipedia.org/wiki/Debt_monetization

    Moreover, the intention of the central bank is different: the QE programmes are not justified to finance governments, but to push down long rates in order to stimulate money creation through bank credit. The increase in the government deficit that these policies allow is presented as an unintended side effect.

  8. Quantitative easing - Wikipedia

    en.wikipedia.org/wiki/Quantitative_easing

    [citation needed] However, the seven-fold increase notwithstanding, current account balances (essentially central bank reserves) being just one (usually relatively small) component of the liability side of a central bank's balance sheet (the main one being banknotes), the resulting peak increase in the BOJ's balance sheet was modest, compared ...

  9. Monetary policy of the United States - Wikipedia

    en.wikipedia.org/wiki/Monetary_policy_of_the...

    Banks have a legal obligation to keep a certain fraction of bank deposit money on-hand at all times. [32] In order to raise additional money to cover excess spending, Congress increases the size of the National Debt by issuing securities typically in the form of a Treasury Bond [33] (see United States Treasury security). It offers the Treasury ...