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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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national (federal) government and subnational (state) government.

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In a federal from of government also referred to as federalism, power is divided between the national (federal) government and subnational (state) government.

Basically, federalism is in sharp contrast with confederation in which states have the dominant power and a unitary government, in which powers of local and provincial governments is held by a single central government.

Some examples of countries in which a federal form of government (federalism) is being practiced are India, Russia, Mexico, Brazil, United States of America, Malaysia, Canada, Germany, Switzerland, Belgium, Australia, Nigeria, Argentina, Bosnia and Herzegovina, etc.

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