Question
You have the following information: -The required reserve ratio (Rd) is 10% -Cash / deposit ratio (C / D) = VND 100 million / VND
You have the following information:
-The required reserve ratio (Rd) is 10%
-Cash / deposit ratio (C / D) = VND 100 million / VND 500 million
-Excess reserve (ER) = VND 50 million
a. Calculate the money multiplier.
b. If the amount (MB) increases by VND 100 million, how will the money supply change?
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
