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Definition
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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
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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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Term
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Definition
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Actual reserves minus desired reserves
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Term
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Definition
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The number by which an increase in bank reserves is multiplied to find the resulting increase in bank deposits
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Term
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Definition
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An increase in currency held outside the banks
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Term
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Definition
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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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Term
| Explain how banks create money by making loans |
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Definition
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Term
| Explain how the Bank of Canada influences the quantity of money |
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Definition
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