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19-10-2019
Social Studies

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if the simple money multiplier is 10 what is the reserve ratio

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19-10-2019

Answer:

If, the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.

Explanation:

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