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Assume that the required reserve ratio is set at 0.5. What is the value of the money (deposit) multiplier? value of money multiplier Suppose that
Assume that the required reserve ratio is set at 0.5. What is the value of the money (deposit) multiplier? value of money multiplier Suppose that a bank holds no excess reserves and receives a deposit from a customer of $300. How does this impact the money supply? increase in money supply: $ Which statement is a consequence of fractional reserve banking? Fractional reserve banking implies that private banks have a role in making changes to the money supply, Control of the required reserve ratio gives the Fed a tool that can be used to implement fiscal policy. Fractional reserve banking ensures that private banks make a profit
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