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Author Question: Consider the following T-account for a bank: If the required reserve ratio is 20 percent and the ... (Read 97 times)

Coya19@aol.com

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Question 1

If the required reserve ratio is RR, the simple deposit multiplier is defined as


.
.
 × change in bank reserves.
 × change in bank reserves.

Question 2

Consider the following T-account for a bank:








If the required reserve ratio is 20 percent and the bank is holding no excess reserves, the bank at this point can make no more loans.


◦ true
◦ false


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Marked as best answer by Coya19@aol.com on Mar 16, 2019

ansleighelindsey

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