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Updated: May 26, 2025
Suppose, a favourable supposition, that the Banking Department holds more than two-fifths of its liabilities in cashthat it lends three-fifths of its deposits and retains in reserve only two-fifths. If then the aggregate of the bankers' deposited reserve be 5,000,000 L., 3,000,000 L. of it will be lent by the Banking Department, and 2,000,000 L. will be kept in the till.
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