The money supply process
6 important questions on The money supply process
What are the three players in the money supply process?
- central banks
- banks
- depositors
Of what does the liabilities sheet exist? (monetary liabilities)
Of what does the asset sheet exist?
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What are loans to financial institutions?
What are primary dealers?
What is a simple deposit multiplier and how is it calculated?
change in checkable deposits in banking system = 1 / required reserve ratio x change in reserves for the banking system
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