Ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account. by how muc

Question

KiRa [710]

2 years ago

15

Ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account. by how muc

h more does the money supply increase if the fed lowers the required reserve ratio to 7%?

Business

1 answer:

ludmilkaskok [199] · Answer 1 · 2022-06-05T18:23:34+03:00

ludmilkaskok [199]2 years ago

4 0

<span>If the ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account, then $ 1,287 is the amount for the money supply to increase if the fed lowers the required reserve ratio to 7%.</span>