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infospace: process book-2-chapter-02

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Extract entities, map to VSM, and synthesize analysis.
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Bernd Worsch
2026-02-19 19:43:19 +01:00
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
# Bank Credit Extension
## Definition
The practice of banks providing credit to merchants through various means including discounting bills, granting cash accounts, and issuing notes. This extension of credit facilitates trade but must be carefully managed to avoid instability.
## Source Chapter
Book II, Chapter 2
## Context
Smith examines how banks extend credit to merchants and the benefits and risks of such extension. He analyses the appropriate limits of credit extension and the consequences of excessive lending.
## Economic Domain
Exchange
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