Answered You can hire a professional tutor to get the answer.

QUESTION

The simple deposit multiplier formula calculates that if the required reserve ratio is 10%, then an initial checking account deposit of $10,000 will

The simple deposit multiplier formula calculates that if the required reserve ratio is 10%, then an initial checking account deposit of $10,000 will set in motion a sequence of events that will result in a total increase in checking account deposits of $100,000. But in the real world, that $10,000 initial deposit will typically result in a total increase in deposits of only around $16,000. What “real-world” factors account for this difference?

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question