What is the impact of these ratios on the level of new money


The answer to Money multiplier

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?

 

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Business Economics: What is the impact of these ratios on the level of new money
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