If the reserve ratio is 10% and a new demand deposit of $10,000 is made,what is the maximum deposit creation possible?
A) $1,000
B) $9,000
C) $10,000
D) $90,000
E) $100,000
Correct Answer:
Verified
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A)Required reserves
B)Excess reserves
C)Net
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A)Medium of
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Q30: M2 includes
A)M1,plus savings and time deposits of
Q31: If the reserve ratio is 10% and
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