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If the required reserve ratio is 10 percent, what will be the maximum change in the money supply in each of the following situations? Ms.

If the required reserve ratio is 10 percent, what will be the maximum change in the money supply in each of the following situations?

  1. Ms. Cruz deposits in Bank Two a check drawn on Bank Three?
  2. Ms. Cruz buys a $5000 U.S. government bond from the Fed by drawing on her checking account.
  3. Ms. Cruz sells a $10,000 U.S. government bond to the Fed and deposits the $10,000 in Bank Three?
  4. Ms. Cruz finds $2,000 in coins and paper currency buried in her backyard and deposits that money in her checking account.

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