What are the different steps of the menstrual cycle?

What are the steps in the money cycle?

• Just to be clear, I am talking about the cycle in which you deposit money into the bank, the banks give it out on loans, you get interest, and you end up making more money than you put into the bank in the first place. and i know wat some of you would say, and that's u just answered your own question. but i need these steps elaborated and i can't do that myself. i've searched all over. i admit, im not the best googler so even if u could just give me a direct link to some website that explains this. i really only need two of the steps (any of them) elaborated but if u know more go ahead and tell me. thanks so much everyone who answers!

• Answer:

  When you put your money in the bank, the bank pays you interest, say 1%. The bank, in turn, loans that money out and charges 2% interest. But, the really thing about is how much money can they loan. Banks have what are called reserve requirements. Bluntly, they have to keep so many reserves but can loan out the rest. If the reserve requirement is 1/8, they can only loan 1/8 of all deposits. But, what happens is they loan that money to other banks who get to loan out 1/8 of that 1/8 this can continue for awhile. Actually the money multiplier is the reciprocal of the reserve requirement. In our example 1/8 reserves means the bank can "create" 8 dollars for every dollar deposited via the mutliplier affect. The reserve requirement has an explicit impact on the inflation rate. So, not to have excess money chasing are scarce goods, the Fed sells bonds and takes money out if circulation when needed. Of course, the inverse is true. During economic downturns, the Fed buys bonds, injecting money into the economy. So, the fed controls the money supply and as such interest rates. And, interest rates are the price of borrowing money (i.e. investment). So, the fed can control, in the short-run, economic growth. That's why you hear of interest rates changing in bad and good times. In the intermediate, the interest rate is rather stable. In the best case scenerio Good times = high interst rate. Bad times = low interest rate.