If the banking system has a required reserve ratio

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1) If the banking system has a required reserve ratio of 25%, then the money multiplier is: _______________

2) If Bank A receives a $20,000 deposit and the reserve requirement is 25%, how much does Bank A have available to loan out? __________

3) If Bank One receives a $20,000 deposit and the reserve requirement is 25%, by how much can the money supply be increased by the banking system: _____________________

Reference no: EM13740943

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