Suppose the reserve ratio for a given bank is 50%. If I deposit $100 in that bank, then will be counted as reserves and will be loanable by the bank, $100: $0 S$0: $100 $50: $50
Suppose the reserve ratio for a given bank is 50%. If I deposit $100 in that bank, then will be counted as reserves and will be loanable by the bank, $100: $0 S$0: $100 $50: $50
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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