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(Scenario: Money Creation) Scenario: Money Creation The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves. Look at the scenario Money Creation. Immediately after the deposit, reserves and demand deposits by $1,000.
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(Scenario: Money Creation) Scenario: Money Creation The reserve requirement is 20%. Leroy receives $...
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