A deposit-insurance currency is any currency for which there are banks taking deposits in that currency which are able to increase the money supply. It is possible for a bank to increase the money supply if it can make loans with customer deposits and has deposit insurance. If a bank taking deposits in a particular currency is able to increase the money supply (of that currency) then that currency is said to be a deposit-insurance currency.
A currency for which this is not true is a safe currency.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment