Question
please help: Money multiplier (Deposit multiplier) Fill in the blanks (banks 1-20) for the omitted banks in the following table. Assume a 15% reserve requirement
please help: Money multiplier (Deposit multiplier)
Fill in the blanks (banks 1-20) for the omitted banks in the following table. Assume a 15% reserve requirement against deposits. You should also fill out the information on the last 2 lines (all other banks and total of all banks). All other banks will represent banks 21+ bank 22 + bank.....till the end of money creation. Total of all banks = bank 1 + bank 2 + all the other banks till the end of money creation).
The numbers for bank 11 and 20 are more of a reference point, showing you that your numbers should be close to those. It is OK to round them off.
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