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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.
# ???? .. difference between gdp at market price and nnp at factor cost
what goals and policies are being discused to address the crowding out effect?
Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $
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what is economic integration
what is gdp
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