Assume That When $100 of New Reserves Enter the Banking

question 31

True/False

Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $625. Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $500, then at that same point in time, loans for all banks amount to $2,625.

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Extraterrestrials

Beings that originate outside Earth and its atmosphere, often speculated about in the context of life existing on other planets or in outer space.

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Relating to symbols or the use of symbols to represent ideas or concepts rather than literal meanings.

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