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Q. How much money can banks create?
Does that mean that banks can create an unlimited amount of money? No the answer is no - it would require them to lend an unlimited amount of money and as we know that is not possible.
Banks use deposits to create new loans though there is a significant difference between loans anddeposits. When individuals deposit money in a bank, they may withdraw the money whenever they like. A bank, conversely, has no right to cancel a loan and get their money back whenever they want to. Banks thus need reserves so that they can deal with large withdrawals. A bank with small reserves will hence be less inclined to lend money.
Firms such a Moody's and Standard &Poor's study corporations that issue bonds. They publish "ratings" for the bonds- evaluation of the likelihood of default. Suppose these rating c
Expenditures and the Effects of Fiscal Policy are stated as follows: Having finished the discussion on the tax policy and taxation, now let’s us focus on expenditures and the e
Questions: Search through newspapers for ONE article that is relevant to the economics concepts. You are also required to attach the article to your final report
An attorney supplies 40 hours of work per week when her fee is $100 per hour but supplies 60 hours of work per week when her fee rises to $120 per hour. Using the midpoint formula,
example of ratio analysis
why and how is price level determined by the monetary sector in the classical model?
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