Question
Assume that Bank of Canada purchases a $125000 bond from the public. This money is deposited by the public in a charted bank. The desired
Assume that Bank of Canada purchases a $125000 bond from the public. This money is deposited by the public in a charted bank. The desired reserve ratio is 16%. How muchmoney can be createdby the charted bank?
A.$100000
B.$656250
C.$781250
D.$500000
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
