What is meant by the fractional reserve system? Why is it fundamental to modern banking?
Answer to relevant QuestionsExplain why Canada gets by without a legal reserve requirement. What caused the Great Bank Crash of 1929? What is the discount rate, and how can the Fed use it to control the nation's supply of money? Keynesian economists were fine-tuning the econ omy during the 1960s but found their policies ineffectual in the 1970s. Why? In some instances, government spending may trigger a "crowding out" outcome that undermines the reason for the government spending. What is "crowding out" and how can government spending cause it?
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