Economics Q173

0. Given that the reserve requirement in an economy is 10 percent for banks, how much money can be created with a deposit of $200?

  • Option : C
  • Explanation : Money Created = Deposit / Reserve Requirement = 200 / 0.1 = 2000.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *