Surely, when people deposit money in bank accounts, they often demand all or nearly all of it
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‘Surely, when people deposit money in bank accounts, they often demand all or nearly all of it out in cash. Isn’t it very dangerous, then, for banks to keep only a small percentage of it in cash or in their operational balances in the Bank of England?’ How would you answer this worry?
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Although some people may withdraw all their deposits i...View the full answer
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