The government must, therefore, introduce a sovereign bank that will shoulder the role of credit creation from commercial banks and ensure all lending contributes to the real economy.” Based on the statement above, it shows that financial system is important in balances the total financial assets to total liabilities. Explain.

The government must, therefore, introduce a sovereign bank that will shoulder the role of credit creation from commercial banks and ensure all lending contributes to the real economy.” Based on the statement above, it shows that financial system is important in balances the total financial assets to total liabilities. Explain.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 1SQ

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