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Help - Money Banking & Financial Market Consider the balance sheet of the Central Bank and commercial bank respectively. Using T-account, explain what happens to
Help - Money Banking & Financial Market
Consider the balance sheet of the Central Bank and commercial bank respectively. Using T-account, explain what happens to reserves and the monetary base when: a) The Central Bank provides loans worth 10million to a commercial bank. b) The Central Bank lends a commercial bank 100 million, but depositors withdraw 50million pounds and hold it as currency.
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