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Assume a 5% required reserve ratio, zero excess reserves, no currency leakage, and a ready loan demand. SAMA buys a SR1 million government bond from
- Assume a 5% required reserve ratio, zero excess reserves, no currency leakage, and a ready loan demand. SAMA buys a SR1 million government bond from investment institution.
- What is the maximum money multiplier?
- By how much will total deposits rise?
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OPEC Twenty Years And Beyond
Authors: Ragaei El Mallakh
1st Edition
1317244737, 9781317244738
