Internal (organic) and external growth

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Hi, since u haven't done unit 4 for A2 can I ask u about liquidity ratio?

In the book it states that "the lower banks keep their liquidity ratio, the more they can lend". Why is this? I thought for this for 2 weeks

Edit: Oh nvm, I understood alr when replying to you hahahaha. You are really a knowledge unlocker.

oneinabillion