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Business, 19.08.2019 22:10 lelliott86

What happens to checkable deposits in the banking system when the fed lends an additional $1 million to the first national bank, assuming that the required reserve ratio on checkable deposits is 10%, banks do not hold any excess reserves, and the public's holdings of currency do not change? a. checkable deposits rise by $1 million. b. checkable deposits rise by $10 million. c. checkable deposits rise by $100,000. d. checkable deposits rise by $900,000.

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What happens to checkable deposits in the banking system when the fed lends an additional $1 million...
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