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Unformatted text preview: because they are liable to pay savings deposits and time deposits. Finally, the liabilities of banks are related to M3 because they are liable to pay large time-deposits, and honor short term repurchase agreements. Essentially, there are four empirical measures of money. The banks liabilities are related to each of the money aggregates....
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.
- Fall '11