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If the reserve requirement for demand deposits is 10 percent,
what is the maximum change in the money supply that the banking system can create if
a. the Federal Reserve puts $1,000,000 of new reserves in the banking system
b. $1,000,000 in cash is deposited in checking accounts
c. IBM borrows $1,000,000 from an insurance company?
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A formally executed written document that is legally binding and establishes, records, or evidences an agreement, right, or obligation.
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