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16 May, 15:35

If the simple money multiplier is 10 what is the reserve ratio

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  1. 16 May, 18:18
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    If, the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.
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