Discuss the importance of Money How do banks create money? Discuss why financial market is important for
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Discuss the importance of Money
How do banks create money?
Discuss why financial market is important for an economy?
What are the main responsibilities of Reserve Bank of Fiji?
Who are bankers and what are their roles?
RBF comprises of eight groups. Discuss each of their functions.
Mr. B has a savings account in Bank of Fiji. Recently he made the following deposits of $10,000, and $20,000 respectively. The bank turned these deposits into loans by calculating excess reserves. The bank paid interest of 4% on first deposit, 0.04% on second. The bank also charged interest of 31% and 0.31% on loans respectively.
Calculate the Net Interest Income earned by the bank on each deposit. Assume reserve ratio as 15%
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