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Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the

Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into

your hands. What are the minimum increase and the maximum increase in the money supply that

may result? Assume the required reserve ratio is 10 percent.

b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving

account. your grandmother gave you the money by writing a check on her saving account. Would

the maximum increase in the money supply still be what you found it to be in part a) where you

received the money from the sky? Why or why not?

c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your

grandmother, you get the money from your mother who had buried it in a can in her backyard. In

this case, would the maximum increase in the money supply be what you found it to be in part a)?

Why or why not?

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