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Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio?
Compounded Monthly
Interest calculation method where interest is added to the principal balance each month, and future interest accrues on the total amount.
Principal Balance
The outstanding amount of a loan or debt not including interest or other charges.
Amortization Schedule
A table detailing each periodic payment on an amortizing loan, breaking down the amounts going toward principal and interest.
Compounded Semi-annually
An interest calculation method where interest is added to the principal balance of an investment or loan twice a year, resulting in interest on interest.
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