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If banks have a desired reserve ratio of 20 percent and do not hold excess reserves, then a $1000 initial deposit will create _____ of

If banks have a desired reserve ratio of 20 percent and do not hold excess reserves, then a $1000 initial deposit will create _____ of total deposits.

a.

$5,000

b.

$200

c.

$50

d.

$20,000

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