An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system.

Does optimization at the margin have any advantage over optimization in levels? Explain with the help of a suitable example

What will be an ideal response?

What is it called when a third party is facilitating negotiations?

a. concession b. grievance c. arbitration d. mediation