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Assume the following information for the entire banking system: Required Reserves Ratio = 16% Currency held outside of the banking system = 1,200 Deposits =

Assume the following information for the entire banking system: Required Reserves Ratio = 16% Currency held outside of the banking system = 1,200 Deposits = 900b If the public deposits 4b previously held as currency into the banking system, after all rounds of the multiplier and assuming there is no currency leak, Deposits will increase by 4b increase by 250b increase by 64b None of these answers is correct increase by 25b

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