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a) 1 million b) 2 million

Question : a) 1 million b) 2 million : 1274

a) 1 million

b) 2 million

c) 16.67 million

d) 50 million

The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. Refer to Scenario 10.1. Based on the initial $100,000 deposit, the money supply will, at most, expand to 1 million 2 million 16.67 million 50 million

 

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