The chartered banks have all decided to self-implement has a reserve ratio of 15% during these uncertain economic times.

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answerhappygod
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The chartered banks have all decided to self-implement has a reserve ratio of 15% during these uncertain economic times.

Post by answerhappygod »

The chartered banks have all decided to self-implement has a
reserve ratio of 15% during these uncertain economic times.
This is because they are concerned about their money supply in
the vaults to handle any cash withdrawals. The Bank of Canada
decides to increase the money supply by depositing $120 000 in
new currency with the chartered banks. How much in new loans
should we see created (theoretically)? Please explain with full
details.
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