Suppose the commercial banking system has received a new deposit of $200 million. With a required reserves ratio of 20%, what is the maximum amount of money this banking system could create due to this deposit?
Suppose the commercial banking system has received a new deposit of $200 million. With a required reserves ratio of 20%, what is the maximum amount of money this banking system could create due to this deposit?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 4WNG
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Suppose the commercial banking system has received a new deposit of $200 million. With a required reserves ratio of 20%, what is the maximum amount of money this banking system could create due to this deposit?
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