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Fed sells bonds - PowerPoint PPT Presentation

Fractional Reserve Banking and the Monetary Policy

Fractional Reserve Banking and the Monetary Policy. J.A.SACCO. Fractional Reserve Banking. Depository institutions are required by the Fed to maintain a specific percentage (reserve requirement) of their customers deposits as reserves. Three types of reserves!.

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Fed sells bonds - PowerPoint PPT Presentation

Fractional Reserve Banking and the Monetary Policy