Business, 08.04.2021 18:40 hellokitty1647
In 2008, the required reserve ratio for a bank's first $9.3 million in checking account deposits was zero. It was 3 percent on deposits between $9.3 million and $43.9 million, and 10 percent on deposits above $43.9 million. In most cases, and for simplicity, we assume that the required reserve ratio is 10 percent on all deposits. Therefore, the simple deposit multiplier is 10. Is the real-world deposit multiplier greater than, less than, or equal to the simple deposit multiplier? A. Greater. Inflation plays a large role in the increase in checkable deposits. B. Equal. There is no difference between the two. C. Less. The simple deposit multiplier is a model with assumptions that keep it higher than the real-world multiplier. D. None of the above. They are very different concepts.
Answers: 2
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Answers: 1
In 2008, the required reserve ratio for a bank's first $9.3 million in checking account deposits...
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