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Suppose the required reserve ratio is 20%. A $40 million cash deposit will, at most, allow an ...

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Suppose the required reserve ratio is 20%. A $40 million cash deposit will, at most, allow an ...

Question 1.

When a bank has no excess reserves, and thus can make no more loans, it is said to be

▸ bankrupt.

▸ ripe for a takeover.

▸ in receivership.

▸ loaned up.

Question 2.

Suppose the required reserve ratio is 20%. A $40 million cash deposit will, at most, allow an expansion of the money supply to

▸ $20 million.

▸ $80 million.

▸ $200 million.

▸ $800 million.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 87 times

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asjstr Author

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