Suppose banks increase excess reserves by $ 471845 . If the reserve ratio is 12 percent, what is the maximum increase in the money supply

$3,932,025.94

Explanation:

Multiplier = 1 / rr

Multiplier = 1 / Reserve ratio

Multiplier = 1 / 0.12

Multiplier = 8.3333

Increase in money supply = Multiplier * Increase in excess reserves

Increase in money supply = 8.3333 * $471,845

Increase in money supply = $3,932,025.94

So, the maximum increase in the money supply is $3,932,025.94.

answer; (cash) is the best out of the above; good luck

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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