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1. The central bank has purchased foreign exchange from the mines amounting to K550 million. Assuming there is no leakage into currency in circulation

1. The central bank has purchased foreign exchange from the mines amounting to K550 million. Assuming there is no leakage into currency in circulation and excess reserves, what is the increase in deposits when the regwired reserve ratio is 11%? (5 marks)

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Authors: Thomas A. Pugel

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