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Assume that elliott deposits $1,000 in coins he collected into his checking account. the required reserve ratio for the banking system is 10% and elliott's bank was fully loaned up prior to his deposit.
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Assume that elliott deposits $1,000 in coins he collected into his checking account. the required reserve ratio for the banking system is 10% and elliott's bank was fully loaned up prior to his deposit.

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money supply will increase : 1/0.1 x $1000 = $10,000.
User Rana Depto
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