this post was submitted on 06 Jun 2025
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Economics

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Do Auto Loans increase the money supply? (self.economics)
submitted 1 week ago* (last edited 1 week ago) by toastmeister to c/[email protected]
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Do Auto Loans increase the money supply, I cant seem to find a source for it. Its not a question on a test or anything, I was just curious, I'd always figured it was only business loans and mortgages that did so.

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[–] toastmeister 2 points 1 week ago* (last edited 1 week ago)

There used to be a reserve requirement where this was partially true on a fractional basis, but they got rid of it if I'm not mistaken.