Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B...

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Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B of excess reserves.

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Answer 1

Answer #1

Calculate money multiplier as follows: Money multiplier Reserve ratio Hence, the money multiplier is 5.

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