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Homework answers / question archive / If the reserve requirement for demand deposits is 10 percent, what is the maximum change in the money supply that the banking system can create if ? a
If the reserve requirement for demand deposits is 10 percent,
what is the maximum change in the money supply that the banking system can create if ?
a. the Federal Reserve puts $1,000,000 of new reserves in the banking system
b. $1,000,000 in cash is deposited in checking accounts
c. IBM borrows $1,000,000 from an insurance company
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