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Business, 15.11.2019 21:31 benji2246

Suppose mrs. a deposits $7,437 in her bank, bank a. bank a then loans its excess reserves to mr. b. mr. b deposits his loan in his bank, bank b. bank b then loans its excess reserves to ms. c. ms. c then deposits her loan into bank c assume that the reserve requirement is 7%. a) how much does bank a keep on reserve? b) how much does bank a loan to mr. b? c) how much does bank b keep on reserve? d) how much does bank b loan to ms. c? e) what is the simple money multiplier? f) what is the maximum amount of newly created deposits? g) what is the maximum amount of newly created money?

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Suppose mrs. a deposits $7,437 in her bank, bank a. bank a then loans its excess reserves to mr. b....
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