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Business, 09.12.2021 15:40 sonyfan

Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2 billion when the reserve requirement is 25 percent. If the reserve requirement is then lowered to 20 percent, we can conclude that the Multiple Choice banking system now has excess reserves of $3 billion. monetary multiplier has decreased. maximum money-creating potential of the banking system has been increased by $7 billion. Fed has decided that money supply needed to be reduced.

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Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2...
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