1. Government pays $10,000 for
services and the money is
deposited in the First
National Bank.
2. Wendy Wilcox borrows
$8,000.
3. Wendy Wilcox pays $8,000
for a new car. Gonow Auto
deposits the money in the
Second National Bank.
Second National Bank lends
Sports Shop $6,400
5. Eventually $50,000 will be
added to the money supply.
Summary of Transactions
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