What will happen to the money supply under the following circumstances in a checkable-deposits-only system? a. The
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What will happen to the money supply under the following circumstances in a checkable-deposits-only system?
a. The required reserve ratio is 25%, and a depositor withdraws $700 from his checkable bank deposit and holds it as cash.
b. The required reserve ratio is 5%, and a depositor withdraws $700 from his checkable bank deposit and holds it as cash.
c. The required reserve ratio is 20%, and a customer deposits $750 to her checkable bank deposit and holds it as cash.
d. The required reserve ratio is 10%, and a customer deposits $600 to her checkable bank deposit and holds it as cash.
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