A depositor deposited $200 in cash into her bank account. The reserve requirement ratio in the banking system is 5%. Wha

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answerhappygod
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A depositor deposited $200 in cash into her bank account. The reserve requirement ratio in the banking system is 5%. Wha

Post by answerhappygod »

A depositor deposited $200 in cash into her bank account. The
reserve requirement ratio in the banking system is 5%. What do you
think will be the initial change in excess reserves in depositors'
own banks? Did they increase or decrease? How to calculate the
money multiplier in the banking system and determine the maximum
change in the money supply once the money creation process in the
banking system is in a competitive state.
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