Question
Assume that the following data describe the condition of the banking system: TotalReserves:$90 billion Transactions deposits:$900 billion Cash held by the public: $100 billion Given
Assume that the following data describe the condition of the banking system:
TotalReserves:$90 billion
Transactions deposits:$900 billion
Cash held by the public: $100 billion
Given the reserve ratio at 0.1, how large would the money supply be if the banks fully utilized their lending capacity?
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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
