Posted: May 25th, 2016
Why do you think it is important to control the money supply? Why do you think banks are required to keep a fraction of deposits in reserve?
Why do you think it is important to control the money supply? Why do you think banks are required to keep a fraction of deposits in reserve? What would happen if there were no required reserves for depository or lending institutions? What are some of the factors affecting these bank reserves? Explain your answers.
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