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Deposit insurance in a fractional reserve system

Assignment Help Macroeconomics
Reference no: EM132476223

Explain:

1. How (the primary way) money is created in the economy. In your explanation you must correctly apply the following terms: actual reserves, required reserves, and excess reserves.

2. Why is the banking system in the United States referred to as a fractional reserve bank system?

3. What is the role of deposit insurance in a fractional reserve system?

Reference no: EM132476223

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