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    Macroeconomics Principles Applications
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    Exam 13: Money and the Banking System
  5. Question
    If the Reserve Ratio Is Designated by "R," the Amount
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If the Reserve Ratio Is Designated by "R," the Amount

Question 57

Question 57

True/False

If the reserve ratio is designated by "r," the amount of deposits a bank can hold as excess reserves is equal to 1 / (1 - r).

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