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deposit multiplier question

If banks hold a 30 percent reserve ratio, an initial increase in bank reserves of $30 will lead to an eventual:

A) increase in the money supply of $180.
B) increase in the money supply of $90.
C) increase in the money supply of $100.
D) increase in loans of $100.
E) increase in loans of $90.

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This is a deposit multiplier question:
<br>Deposit multiplier = 1 / Reserve Ratio ...

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A deposit multiplier question is solved.

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