the relation between deposit,spending and money supply.?

Question

Hello, I am a student studying Finance.
When reading a book, I came across a sentence saying "Events in the financial system could cause an increase in spending by causing an increase in the money supply. This will happen if there is an expansion of banks and their deposit."

What I don't understand is that
How is it possible that an expansion of deposits can cause an increase in money supply ,then,an increase in spending.

because
if there is an increase in the level of deposit, which means people saving more than before.
There must be fall in money supply, what is more, With people having less money in their hands because of saving, the level of spending must be lower than before.

So, would you please let me understand how an expansion of deposit causes an increase in the money supply and ultimately an increase in the level of spending?

Thank you for reading.

Answer 1

My best guess is that bank and their deposit is money available for loans. I don't remember all the wording any more but banks keep a portion of their money for business and then other monies for loans. If they have more extra money, then there is more available to loan out.
If there is plenty of money available for loans then there is and increase in the money supply.(There's more to this one but I don't remember). If businesses can borrow, then they will borrow and spend.
I'd like to think I'm reasonable smart and my economics class was possibly the hardest class I took. Had I not rotely memorized the study book (and I thoroughly admit I did not understand all of it but got the only A in the class), I would not have made it through the tests in that class. I did learn so much and so much has been forgotten.

Answer 2

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Answer 3

funds can`t purchase love,,and love can`t be bought for funds,,,,, no relation,,yet funds and love the two are necessary to stay a satisfied existence,,,,yet in no way mixture all of them,,,,their way is diverse,,