Assume that the following data describe the condition of the commercial banking system: Total reserves: $90 billion Transactions deposits: $900 billion Cash held by public: $100 billion Given the reserve ratio, how large would the money supply be if the banks fully utilized their lending capacity?
Assume that the following data describe the condition of the commercial banking system: Total reserves: $90 billion Transactions deposits: $900 billion Cash held by public: $100 billion Given the reserve ratio, how large would the money supply be if the banks fully utilized their lending capacity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Assume that the following data describe the condition of the commercial banking system:
Transactions deposits: $900 billion
Cash held by public: $100 billion
Given the reserve ratio, how large would the money supply be if the banks fully utilized their lending capacity?
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