Question
Howdy! I'm hoping that you can help me with the following answers - I believe I have a general idea but confirmation is nice :)
Howdy! I'm hoping that you can help me with the following answers - I believe I have a general idea but confirmation is nice :) Thanks!
1.If the required reserve ratio is .20, what is the money multiplier?
2.If the required reserve ratio is .20, what will the increase in the bank's required reserves be when there is a new deposit of $7,000?
3.If the required reserve ratio is .20, what will the increase in the bank's excess reserves be when there is a new deposit of $7,000
4.If the required reserve ratio is .20, what is the maximum value of checkable deposits that can be created from the new deposit of $7,000?
5.If the required reserve ratio increases, will the money multiplier increase or decrease?
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