Suppose that banks had a desired reserve ratio of 4 percent, $12 billion in currency, no excess reserves, and deposits at the central bank of $4 billion. What is the amount of deposits in banks? The amount of deposits in banks is $ billion.
Suppose that banks had a desired reserve ratio of 4 percent, $12 billion in currency, no excess reserves, and deposits at the central bank of $4 billion. What is the amount of deposits in banks? The amount of deposits in banks is $ billion.
Chapter15: Money Creation
Section: Chapter Questions
Problem 9SQP
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