00:01
So while seeing the question left for the move to the answer.
00:02
So let's see here that the first one is if the interest rate is 1%.
00:13
Yeah, less than the market and frustrate.
00:28
Okay, the bank will desire to keep more amount of money of loans as a generate more income for the bank, the bank will not prefer to keep access reserves over minimum reserves.
02:18
The money.
02:20
The bank money question will be affected as the as there will be an increasing their debt created.
03:07
Mhm.
03:11
By the bank.
03:18
So let's move to the 2nd 1 which is if the interest rate is equal to market interest rate.
03:58
The bank are indifferent in keeping reserves.
04:05
Yes.
04:06
Yeah.
04:24
With the federal leather and providing loans, both alternatives provide the same year to the bank.
05:23
So let's move to the 3rd 1.
05:28
The liquidity trap with a situation where the money is held by the public.
06:19
Even when i am frustrated.
06:20
Zero people list in hold money.
06:55
Similarly, if the interest rate is zero bank will still hold money rather than keeping it as a result...