Question
Imagine that you deposited $5,000 in Bank A. The Reserve ratio is 0.1. Imagine that the fractional banking system is fully functioning. After five cycles,
Imagine that you deposited $5,000 in Bank A. The Reserve ratio is 0.1. Imagine that the fractional banking system is fully functioning. After five cycles, what is the amount that has been deposited, and what is the total amount that has been lent out?
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
