Suppose an individual deposits $1,500 into her chequing account, which eventually leads banks to increase cash reserves of $1,500 and initiates $36,000 in additional loans. The target reserve ratio is [blank1]%. Specify your answer in percentage terms, rounded to 1 decimal place.

Suppose an individual deposits $1,500 into her chequing account, which eventually leads banks to increase cash reserves of $1,500 and initiates $36,000 in additional loans. The target reserve ratio is [blank1]%. Specify your answer in percentage terms, rounded to 1 decimal place.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 7SQ

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