Question
Assume the reserve requirement is 10% and no excess reserves areheld. If an initial cash deposit of $10,000 is made, the moneysupply has the potential
Assume the reserve requirement is 10% and no excess reserves areheld. If an initial cash deposit of $10,000 is made, the moneysupply has the potential to increase by:
| A. | $90,000. | |
| B. | $110,000. | |
| C. | $100,000. | |
| D. | $11,000. |
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
