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18. The Monetary System
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18. The Monetary System
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18. The Monetary System / Required Reserves and the Deposit Multiplier / Problem 6
Problem 6
If a bank receives a deposit of \$800 and the reserve ratio is 25%, how much money will be in circulation after two rounds of lending?
A
\$800
B
\$1,600
C
\$1,280
D
\$2,000
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