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What would be the maximum amount of checkable deposits

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Reference no: EM13203728

The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages.

a. What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier?

Reference no: EM13203728

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What would be the maximum amount of checkable deposits : What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier?
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