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kati45 [8]
3 years ago
7

If the simple money multiplier is 10 what is the reserve ratio

Social Studies
1 answer:
trasher [3.6K]3 years ago
7 0

Answer:

If, the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.

Explanation:

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