Required amount of reserves economy money supply increase

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Q. According to the article, sales of a given textbook tend to fall in the semester before a new edition of the book is released since?

Q. If the Fed requires banks to hold 5 percent of deposits as reserves, elucidate how much in excess reserves does 1st National now hold?

Assume that all other banks hold only the required amount of reserves. If 1st National decides to reduce its reserves to only the required amount, by Elucidate how much would the economy's money supply increase?

Reference no: EM1320377

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