Why dont banks hold 100 percent reserves? How is the amount of reserves banks hold related to

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Why don’t banks hold 100 percent reserves? How is the amount of reserves banks hold related to the amount of money the banking system creates?

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:11 AM

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Why dont banks hold 100 percent reserves? How is the amount of reserves banks hold related to

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Banks do not hold 100 reserves because it is more profitable to use the reserves to make ...View the full answer

Principles of economics

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