Business, 19.12.2019 21:31 calistaallen6655

Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $625. assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. if, at a point in time, reserves for all banks amount to $500, then at that same point in time, loans for all banks amount to $2,625.
a) true
b) false

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Assume that when $100 of new reserves enter the banking system, the money supply ultimately increase...

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