Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 20%. Also, the bank is currently holding $700,000 in total reserves. As a result, this bank can increase the money supply by $___. Correct answer is 200000
Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 20%. Also, the bank is currently holding $700,000 in total reserves. As a result, this bank can increase the money supply by $___. Correct answer is 200000
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter13: The Federal Reserve System
Section: Chapter Questions
Problem 5WNG
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Suppose a bank has $2,500,000 in checkable deposits and the
Correct answer is 200000
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