What fractional reserve banking means — banks lend out most of their deposits

How does the concept of the Money Multiplier effect work in fractional reserve banking systems to amplify the money supply?

Money Multiplier = 1 / Reserve Ratio; banks lend fraction of deposits, increasing money supply

What reserve requirements do — mandate how much cash banks must hold against deposits

Reserve requirements dictate the percentage of deposits banks must keep as cash reserves

What raising interest rates does — makes borrowing more expensive, slows spending and inflation

Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation

What quantitative easing does — central bank buys assets to inject money into the economy

Quantitative easing increases money supply and stimulates economic activity

What the debt-to-income ratio measures — monthly debt payments divided by gross monthly income

Debt-to-income ratio measures monthly debt payments as a percentage of gross monthly income

What the yield curve shows — interest rates across different bond maturities

The yield curve illustrates the relationship between bond yields and their maturities