What is (3x9-6+3\10)
1 answer:
You might be interested in
Answer:
Option B
Step-by-step explanation:
Given that the required reserve ratio is 20 percent.
Since banks are conservative they choose not to loan all their excess reserves
i.e. only 20% of deposits is kept as reserve and 80% lent.
This 80% will again be deposited in a bank and 80% of 80 i.e.64% would be lent. Thus this will form a geometric progression infinitely as
deposits with common ratio 0.8<1
Hence infinite sum =
So deposit multiplier is B) equal to 5