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Question 14: Canada, the UK, New Zealand, Australia and Sweden have no reserve requirements. a. This means that banks in these countries are likely to

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Question 14: Canada, the UK, New Zealand, Australia and Sweden have no reserve requirements. a. This means that banks in these countries are likely to hold zero reserves at the central bank. b. This means that banks in these countries can create money without limit since the money multiplier is practically innite. c. All of the answers. (1. This means the ability of banks to create money through lending is constrained by capital requirements. e. None of the answers

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