Asset debits are recorded in the left debits column.
Answer:
64%
Explanation:
Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.
Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.
However funds have been made available for small business and are made available primarily through commercial banks
The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.
<h3>What is the reserve ratio?</h3>
The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.
<h3>How is reserve ratio determined?</h3>
- The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
- The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>
The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.
learn more about reserve ratio here
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Answer:
IT HEPLS TO SOLVE ECONOMIC PROBLEMS ABOUT TRADITIONAL SUPERSTATION
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