if the banking system has $500 of total reserves and a reserve requirement of 25 percent, the money supply can reach a maximum of

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05-12-2022
Business

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if the banking system has $500 of total reserves and a reserve requirement of 25 percent, the money supply can reach a maximum of

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AmishaSrivastavaidn AmishaSrivastavaidn · Answer 1 · 2022-12-10T09:14:45-05:00

If the banking system has $500 of total reserves and a reserve requirement of 25 percent, the money supply can reach a maximum of $2,000

What is banking ?

Banking is the business of protecting other people's money.
Banks lend out this money, generating interest that benefits the bank and its customers.
A bank is a financial institution authorized to accept deposits and make loans.
However, other financial services can also be provided.
A bank is a financial institution authorized to accept deposits and make loans.
There are following different types of banks as retail banks, commercial banks, and investment banks.
In many countries, banks are regulated by governments.
The top five banking services are checking and savings accounts, credit and mortgage services, wealth management, credit and debit card offerings, and overdraft services.
Under the banking and finance umbrella, the industry includes consumer-centric commercial banks, such as Bank of America, and central banks, government agencies that regulate the industry and control monetary policy.

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What is banking ?

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