The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves
Question:
a. What would be the maximum amount of checkable deposits after deposit expansion and what would be the money multiplier?
b. How would your answer in (a) change if the reserve requirement had been 9 percent?
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Related Book For
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar
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