If required reserve ratio is 10 percent what is the monetary multiplier

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odomwyatt66 odomwyatt66

24-04-2022
Business

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If required reserve ratio is 10 percent what is the monetary multiplier

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ingramjazmine9 ingramjazmine9 · Answer 1 · 2022-04-24T17:33:23+02:00

ingramjazmine9 ingramjazmine9

24-04-2022

Answer:

10

Explanation:

If the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.

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