Answered: If the desired reserve ratio in a…

If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit of $10,000 will create $36,356 of money. 1.True 2.False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit of $10,000 will create $36,356 of money.

1.True

2.False

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