a- Explain the distinction between a bank's actual reserves and its required reserves.

b- Explain the multiple expansion of loans and money by the entire banking system.

c-Explain the money multiplier, explain how to calculate it, and demonstrate its relevance.

Answer rating: 100% (QA)

a Actual Reserves vs Required Reserves Actual reserves refer to the total amount of funds that a bank holds in its vaults and on deposit at the centra... View the full answer