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Why Is Banking System Said On Fractional Reserve?

January 24, 2024 by Ahmed Ali

Why Is Banking System Said On Fractional Reserve? Fractional-reserve banking is a system that allows banks to keep only a portion of customer deposits on hand while lending out the rest. This system allows more money to circulate in the economy. Critics of the system say it creates the danger of a bank run Why

How Does Monetary Authority Regulate Money Supply?

January 24, 2024 by Ahmed Ali

How Does Monetary Authority Regulate Money Supply? The Fed can influence the money supply by modifying reserve requirements How does monetary policy regulate money supply? Influencing interest rates, printing money, and setting bank reserve requirements What is the role of monetary policy in controlling money supply? Monetary policy is the control of the quantity of