In reality, not all of the $500 million will generally be deposited in demand deposit accounts of
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In reality, not all of the $500 million will generally be deposited in demand deposit accounts of commercial banks, and commercial banks will not generally hold all of the $500 million in reserve accounts of Federal Reserve Banks. We relax these simplifying assumptions and look at the effect on total reserves and the monetary base later in the chapter. LO.1
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Financial Markets And Institutions
ISBN: 9781259919718
7th Edition
Authors: Anthony Saunders, Marcia Cornett
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