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NOTE: M3 = M2 + Large Time Deposits. CHAPTER 18 ... Since the money supply includes demand deposits, the banking system plays an important role. slide 5.. The ppt slides relate to a 20 hour lecture course on Money and Banking for final year economics and postgraduate students of banking delivered by Kent .... Where does the government get its money? Federal. Individual income tax (+); Social insurance (++); Corporate tax (--); Other (-).. A simple theory linking the inflation rate to the growth rate of the money supply. Begins with the concept of velocity… 4/1/2017 Note: These lecture notes are .... Central banks. Their primary responsibility was to preserve the official parity between their currency and gold. They adopted policies that pushed the nonreserve .... 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