Change in supply of money
Assume the Yukon Bank has the given simplified balance sheet. The reserve ratio is 6.25 %. By how much has the supply of money modified? Explain.
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The money supply has enhanced through $15,750, since it is the amount by which demand deposits have raised, and demand deposits are part of the money supply.
Explain intermediation.The financial system makes it achievable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual profit. While funds flow from surplus economic units to a financial institu
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