What is the current required reserve ratio

Reference no: EM133336645

Topic: Assume a 5% reserve ratio (RRR) and no currency leakages.

a) What is the potential money multiplier?

b) How will total deposits in the banking system ultimately change if the Federal Reserve purchases $19 million in U.S. government securities? What is the current Required Reserve Ratio?

Reference no: EM133336645

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