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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.
Assume that Jimmy Cash has $2000 in his checking account and uses his checking card to withdraw $200 from his ATM machine. By what amount did M1 change from this individual transac
briefly explain with keynesian consumption?
At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would b
Give detail explanation of Exchange Rate In most countries, exchange rate is expressed using foreign currency as base currency. For instance, in Denmark, USD exchange rate woul
Q. Demand for money for AS-AD model? The money market The demand for money depends negatively on R,positively on Y and positively on P in AS-AD model
#discuss the arguments for and against the use of trade barries in anay counrty
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, in
Your local newspaper reports the following: the owners of the New Orleans Sandwich Shop in Seattle, Washington, found that when they priced their hot dogs (reportedly the rolls-roy
circular flow of national income?
(a) Use this information to set up a diagram showing the firm''s total revenue and total cost schedules. In this diagram, show the points at which the firm is maximizing profits.
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