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Business, 29.07.2020 22:01 EllaLovesAnime

Suppose people deposit $720 into Bank 1. The banking system has a reserve ratio of 10%. The policy of all banks is to make as many loans as possible. Each time a loan is made, the entire amount is spent, and it is then deposited into the next bank. If banks continue to make as many loans as possible, what is the total value of deposits in the banking system?

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Suppose people deposit $720 into Bank 1. The banking system has a reserve ratio of 10%. The policy o...
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