Business, 02.05.2021 03:30 michaelsmith710
Suppose that in a given month $51 million is deposited into the banking system while $55 million is withdrawn. Also suppose that the Fed has set the reserve requirement at 25 percent and that banks have no excess reserves at the beginning of the month. What is the maximum amount of new checkable-deposit money that can be created (or removed) by the banking system as a result of these deposits and withdrawals?
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Suppose that in a given month $51 million is deposited into the banking system while $55 million is...
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