If the reserve ratio was 15% and someone deposited an additional $40,000, what would be the maximum increase in total deposits over time? $6000 $40,000 $60,000 $266,667 $600,000

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 20RQ: Name several different kinds of bank account. How are they different?
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If the reserve ratio was 15% and
someone deposited an additional
$40,000, what would be the maximum
increase in total deposits over time?
$6000 $40,000 $60,000 $266,667
$600,000
Transcribed Image Text:If the reserve ratio was 15% and someone deposited an additional $40,000, what would be the maximum increase in total deposits over time? $6000 $40,000 $60,000 $266,667 $600,000
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