Question 1
Explain what is meant by fractional reserve banking. Relate this to money creation and risk to the bank.
Question 2
Which tool of monetary policy is most important? Why is this more important than the other tools?
Question 1
Explain what is meant by fractional reserve banking. Relate this to money creation and risk to the bank.
Question 2
Which tool of monetary policy is most important? Why is this more important than the other tools?
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