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Explain: 1. How (the primary way) moneyis created in the economy. In your explanation you must correctly apply the following terms: actual reserves, required reserves,

Explain:

1. How (the primary way) moneyis created in the economy. In your explanation you must correctly apply the following terms: actual reserves, required reserves, and excess reserves.

2.Why is the banking system in the United States referred to as a fractional reserve bank system?

3.What is the role of deposit insurance in a fractional reserve system?

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