Indicate why such a scheme would help monetary control

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Reference no: EM131139870

A proposal for "100 percent banking" involves a reserve ratio of unity. Such a scheme has been proposed for the United States in order to enhance the Fed's control over the money supply.

a. Indicate why such a scheme would help monetary control.

b. Indicate what bank balance sheets would look like under this scheme.

c. Under 100 percent banking, how would banking remain profitable?

Reference no: EM131139870

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