Scenario 14-2 Imagine that Kristy deposits $10,000 of curre…
Scenario 14-2 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. Refer to Scenario 14-2. As a result of Kristy’s deposit, checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of
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Scenario 14-1 Currency $1,000 Checking Account Balances 2,000 Savings Account Balances 5,000 Small-Denomination Time Deposits 6,000 Noninstitutional Money Market Fund Shares 7,000 Consider the information above for a simple economy. Assume there are no traveler’s checks. Refer to Scenario 14-1. M1 in this simple economy equals
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