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Table 10-3 The Following Information Pertains to the Bank of Kamloops

Question 72

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Table 10-3
The following information pertains to the Bank of Kamloops. Table 10-3 The following information pertains to the Bank of Kamloops. -Refer to the Table 10-3.Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency.If the Bank of Kamloops decides to hold exactly 5 percent in reserves,by how much would the economy's money supply increase? A) $500 B) $1200 C) $1500 D) $2000
-Refer to the Table 10-3.Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency.If the Bank of Kamloops decides to hold exactly 5 percent in reserves,by how much would the economy's money supply increase?


A) $500
B) $1200
C) $1500
D) $2000

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