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The legal reserve ratio is 0.2
Find the credit multiplier
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- The legal reserve ratio is given to be as 15.5% Calculate the value of money multiplierAssets Liabilities Reserves $ 1,500 Loans $ 3,500 Initial Deposit $ 5,000 Assume required reserve ratio is 10 percent and that 100% of all the loans are deposited as new deposits. ii. Calculate the deposit and credit multiplier.Find The value of legal reserve ratio when the value of money multiplier is 22
- In a system of fractional-reserve banking, money multiplier is _____________ Equal to one. Greater than one. Less than one. None of the above is true."Banks make a profit by paying depositors a high rate to attract funds and making loans at a low rate to encourage borrowing." Is the previous statement correct or not?Give True or False: Credit rationing is quantitative credit control measure of Central bank.
- a supply and demand analysis for a decrease in reserve requirements changes borrowed reserves from positive to zero without changing the federal funds rate.If the legal reserve ratio is 17% Calculate the value of multiplierDiscuss factors that determine the demand and supply of money in the financial system
- Give one policy that can complement the reserve requirement in expanding credit in the banking industry considering the peculiarities of rural and savings banks.Overnight loans issued by the Federal Reserve to commercial banks are known as A. Negotiable CD's B. Commercial paper C. Federal funds D. Repurchase agreementsCalculate the value of legal reserve ratio when the value of money multiplier is 10