Riskiness of deposits:
During banking panics, an increase in
the perceived riskiness of deposits increases the currency-
deposit ratio. (e.g in a recession, people may also view bank
deposits as risky and therefore cr increases, which in turn
reduces m and the money supply (an increase in cr enlarges
the denominator more than the numerator as cr is added to a
larger number in the numerator and a smaller number in the
denominator).
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