"deposits at other banks (shown as asset of commercial bank) is usually deposits from small banks at larger banks (referred to as correspondent banking)" Please extend how the text in parenthesis involve in deposits at other banks in the above statement. Explain with some example to make it easier to understand the relationship between deposits at other banks and correspondent banking.

"deposits at other banks (shown as asset of commercial bank) is usually deposits from small banks at larger banks (referred to as correspondent banking)" Please extend how the text in parenthesis involve in deposits at other banks in the above statement. Explain with some example to make it easier to understand the relationship between deposits at other banks and correspondent banking.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 17QP

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