Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $30,000. If the reserve ratio is 0.1%, the banking system can expand the supply of money by a maximum of $___
Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $30,000. If the reserve ratio is 0.1%, the banking system can expand the supply of money by a maximum of $___
Chapter25: Money Creation
Section: Chapter Questions
Problem 6SQ
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Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $30,000. If the reserve ratio is 0.1%, the banking system can expand the supply of money by a maximum of $____
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