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Lerok [7]
3 years ago
6

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve rat

io = 0.20, excess reserves prior to the currency deposit = $0. The $40 billion deposit of currency into checking accounts will initially create __________.
Social Studies
1 answer:
serg [7]3 years ago
6 0

Answer: The $40 billion deposit of currency into checking accounts will create "$40 billion of new checkable deposits."

Checkable deposits are also known as demand deposit which means that the owner can withdraw without any prior notice.

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