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Banks are an important part of Australia's financial system and their business includes taking deposits from the public and providing loans to households and businesses.What

Banks are an important part of Australia's financial system and their business includes taking deposits from the public and providing loans to households and businesses.What is a reserve ratio and explain how a fractional banking system operates?Following the 2008 global financial crisis (GFC), the real-world deposit multiplier tended to be way smaller than the simple multiplier.Explain why that was the case and how it would have affected the money supply in the economy.

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