3 ms·
> the bank gets back 'bank reserves' > bank's constraint against lending more is its equity reserve ratio Wait, isn't this the same reserve? IE. By putting mo
by whytaka 6y ago
> the bank gets back 'bank reserves'
> bank's constraint against lending more is its equity reserve ratio
Wait, isn't this the same reserve? IE. By putting more capital in the reserve, the banks are able to lend proportionally more?