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Explain why a single commercial bank can safely lend only an amount equal to its excess r

Explain why a single commercial bank can safely lend only an amount equal to its excess r

 Explain why a single commercial bank can safely lend only an amount equal to its excess reserves but the commercial banking system as a whole can lend by a multiple of its excess reserves. What is the monetary multiplier, and how does it relate to the reserve ratio? ,

 

Abhinav 05-Dec-2019

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