Change in supply of money
Assume the Yukon Bank has the given simplified balance sheet. The reserve ratio is 6.25 %. By how much has the supply of money modified? Explain.
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The money supply has enhanced through $15,750, since it is the amount by which demand deposits have raised, and demand deposits are part of the money supply.
Inventory is sometimes thought of as an essential evil. Describe. Inventory ties up funds and these are not earning an explicit return. Some inventory is frequently necessary, however, as companies attempt to hold the lowest acceptable amount.
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