The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that it is $50 million sho reserves. If It is unable to obtain any additional reserves, it must reduce deposits and money supply by Multiple Choice O $250 million. $625 million. $500 million. $50 million.
The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that it is $50 million sho reserves. If It is unable to obtain any additional reserves, it must reduce deposits and money supply by Multiple Choice O $250 million. $625 million. $500 million. $50 million.
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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