21.   In the medium and long term, the major sources of monetary growth are banks choosing to operate with a lower liquidity ratio and government borrowing.

22.   Banks choosing to operate with a lower liquidity ratio could be prevented by the authorities imposing statutory reserve requirements on banks.

23.   Banks, being prepared to operate with a lower liquidity ratio, were only too pleased to supply the credit being demanded.

24.   Just as with a cash ratio, the authorities could impose a statutory liquidity ratio or they could merely allow banks to set their own prudent liquidity ratio.

25.   Banks may vary their prudent liquidity ratios.

26.   The liquidity ratio is calculated by dividing cash, deposits and securities by monthly average sales.

27.   Banks are required to submit reports on return on assets and liabilities, as well as liquidity ratios to the authority.

28.   The number of respondents expecting higher interest rates declined sharply but the liquidity ratio of companies remains unchanged.