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2(i). If all depositors tried to convert their deposits into cash at once, they would find that there are not sufficient reserves in the system to permit all of them to do this at the same time. Why then do we not still have panicky runs on the banks? Would it be better for the Bank of Canada and the federal government to impose a 100% reserve requirement? What effect would such a reserve requirement have on the banking system's ability to create deposit money? Would it preclude any possibility of a panic?
(ii). Explain the practice of "fractional reserves banking" and briefly show how it provides the capacity for banks to create deposit money through debt monetization (i.e., through the process of payments intermediation). Do you think that this is a "good way" to create money? Explain carefully.
Q. Participation of Employees in Management? To facilitate meaningful and effective participation of workers in the management process it was decided in March 1994 that the Cor
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Determine the term- Understandability Accounting reports must be expressed as clearly as possible and must be understood by those at whom the information is aimed.
2 Individual Research Assignment This assignment is an individual assessment. The research and written submission should therefore be your own work. You will need to submit this as
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