Expansion of bank deposits
Problem: The multiple expansion of bank deposits usually requires how many banks for complete money creation?A) 1
B) 3
C) 5
D) 10
E) There is no limit to the number of banks that can be involved in this process.
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Problem: How does the FOMC accomplish the open market short term interest rate?
Problem: The multiple expansion of bank deposits usually requires how many banks for complete money creation?
If banks are required to hold 20% of all deposits as reserve, and an additional 5% is retained as a hedge against falling short of reserves, then a $300,000 increase in deposits will result in:
Problem: If the Federal Reserve requires that banks retain 15% of all deposits as reserves, a bank that receives $100,000 in deposits can loan up to:
Problem: If banks hold a 30 percent reserve ratio, an initial increase in bank reserves of $30 will lead to an eventual:
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