<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> Money creation (also known as credit creation) is the process by which the money supply of a country or a monetary region (such as the Eurozone) is added to . A central bank may introduce new money into the economy (termed "expansionary monetary policy") by purchasing financial assets or lending money to financial institutions . However, in most countries today, most of the money supply is in the form of bank deposits, which is created by private banks in a fractional reserve banking system . Bank lending increases the amount of broad money beyond the amount of base money originally created by the central bank . Reserve requirements, capital adequacy ratios, and other policies are used by the central bank to limit this process . </P> <P> Central banks monitor the amount of money in the economy by measuring monetary aggregates such as M2 . The effect of monetary policy on the money supply is indicated by comparing these measurements on various dates . For example, in the United States, money supply measured as M2 grew from $6.407 trillion in January 2005, to $8.319 trillion in January 2009 . </P>

Where does the central bank get its money
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