You take $150 you had kept under your mattress and deposit it in your bank account. suppose this $150 stays in the banking system as reserves and banks hold reserves equal to 12.5 percent of deposits. the total amount of deposits in the banking system increases and the money supply increases

The answer is $12.

Using the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Therefore, the total money created in the banking system is $12. From the above, it could be rightly said that creation of money by banks is a process whereby the banks received deposit from customers and give the deposit to borrowers in the form of loan after deducting cash or reserve ratio.

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.