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Explain about the monetary role of banks.
The Monetary Role of Banks:
• A bank is a financial intermediary.
• Bank reserves are the currency banks hold within their vaults and including their deposits at the Federal Reserve.
• The reserve ratio is the division of bank deposits which a bank holds like reserves.
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Sam start business with his savings $20000, a gift from his parents $10000 and a personal loan from his friends of $5000. All money is deposited in a bank account.
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