Member Bank Indebtedness and Net Demand Deposits in the Federal Reserve System

Abstract

Connection between member bank indebtedness and net demand deposits, 509. — Varying degrees of sensitivity to indebtedness according to ( a ) classes of banks, 511. — ( b ) business conditions, 516. — Alternative explanations of the movement of net demand deposits: ( a ) movement of “reserve funds,” 517. — ( b ) rediscount rate changes, 519. — Summary of argument, 522. — Implications, 522.