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Compare and contrast the two types of reserves held by commercial banks in a modern banking system. (1 point) Outline the advantages and disadvantages of
- Compare and contrast the two types of reserves held by commercial banks in a modern banking system. (1 point)
- Outline the advantages and disadvantages of holding reserves for commercial banks. (1 point)
- Discuss whether currency is an asset or liability of a Central Bank.
Support your answer with a thorough explanation, using the concepts learnt in the course. (1 point)
- Analyze the impact of each of the following events on the Central Banks balance sheet by writing your answers in the right column in the table below: (2 points)
Event or Transaction | Impact on the CB balance sheet |
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