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Subjects -> Economics -> Monetary Theory/Policy -> Posting #95743
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Economics, Monetary Theory/Policy
Year 4

Money multiplier ratios


1.  Assuming individuals hold no currency, calculate the simple money multiplier using the following reserve ratios:

    5%, 10%, 20%, 25%, 50%

2.    What is the impact of these ratios on the level of new money that can be created given a $100,000 cash deposit into the banking system?



By OTA:  Giovanni Chin-A-Sen, MBA

OTA Rating:  4.9/5

Your Price:  $2.19  (original value ~$7.98)

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