Economics - Money and Banking - Banking system and credit creation - Money Multiplier Problems
6 calculation problems. Q1: 'Reserve ratio = 20%. Money multiplier = ___' (5). Q2: 'Reserve ratio = 10%. Initial deposit = $5000. Maximum money created = ___' ($50,000). Q3: 'Reserve ratio = 25%. Bank receives $1000 deposit. It can lend out ___' ($750). Q4: 'Money multiplier = 4. Reserve ratio = ___