The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on deposit with the central bank represents the deposit ratio Is it true or false?
The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on deposit with the central bank represents the deposit ratio Is it true or false?
Chapter19: Money Creation
Section: Chapter Questions
Problem 4SQP
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The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on deposit with the central bank represents the deposit ratio
Is it true or false?
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Step 1
Banks hold a certain proportion of deposits as required reserves, mandated by central bank.
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