Suppose that the required reserve ratio is 2 percent and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits.in the banking system brought about by your deposit? What is the potential change in the money supply?
Suppose that the required reserve ratio is 2 percent and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits.in the banking system brought about by your deposit? What is the potential change in the money supply?
Chapter25: Money Creation
Section: Chapter Questions
Problem 9SQ
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Suppose that the required reserve ratio is 2 percent and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits.in the banking system brought about by your deposit? What is the potential change in the money supply?
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