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How banks create money in a fractional reserve banking

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Reference no: EM133522550

Question:

A. Explain THREE 13! functions of the Central Bank

B. Explain with an example, how banks create money in a fractional reserve banking system

C. Explain how each of the following transactions affects the transaction demand for money i. increase in the number ot'automated teller machines throughout the country. ii. an increase in nominal GDP

Reference no: EM133522550

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