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Definition
| A statement that summarizes assets (amounts owned) and liabilities (amounts owed) |
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| The proportion of a bank's total deposits that are held in reserves |
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Definition
| The ratio of reserves to deposits that banks wish to hold so that they are sure to have enough cash to cover withdrawals by their customers |
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Definition
Actual reserves minus desired reserves |
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Definition
| The number by which an increase in bank reserves is multiplied to find the resulting increase in bank deposits |
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Definition
| An increase in currency held outside the banks |
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Definition
| The number by which a change in the monetary base is multiplied to find the resulting change in the quantity of money |
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| Explain how banks create money by making loans |
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Definition
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| Explain how the Bank of Canada influences the quantity of money |
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Definition
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