Question: Outline the effects of a decrease in the desired ratio of currency to deposits on bank lending and deposit creation.

Outline the effects of a decrease in the desired ratio of currency to deposits on bank lending and deposit creation.

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The desired ratio of currency to deposits also known as the reserve ratio or the cash reserve ratio is a key element of monetary policy It refers to t... View full answer

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Outline the eects of a decrease in the desired ratio of currency to deposits on bank lending and deposit creation.

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