An economy has high powered money of $10 million. If cash drain is known to be 10%, find the required reserve ratio to ensure that total deposit by commercial banks will be $80 million without any excess reserve A. 2.50% B. 5% C. 10% D. 20%
An economy has high powered money of $10 million. If cash drain is known to be 10%, find the required reserve ratio to ensure that total deposit by commercial banks will be $80 million without any excess reserve A. 2.50% B. 5% C. 10% D. 20%
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 16P
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Q) An economy has high powered money of $10 million. If cash drain is known to be 10%, find the
A. 2.50% B. 5% C. 10% D. 20%
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