Join the conversation on IDNLearn.com and get the answers you seek from experts. Get the information you need from our community of experts who provide accurate and comprehensive answers to all your questions.
Sagot :
Answer:
If the reserve requirement is 10%, the deposit multiplier means that banks must keep 10% of all deposits in reserve, but they can create money and stimulate economic activity by lending out the other 90%. So, if someone deposits $100, the bank must keep $10 in reserve but can lend out $90.
Explanation:
:)
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Find clear and concise answers at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.