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    Reserve Ratio and Money Supply

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    Assuming a 15% reserve ratio, an increase in deposits of $300,000 could eventually result in:

    A) a $2 million increase in the money supply.
    B) a $345,000 increase in the money supply.
    C) a $45,000 increase in the money supply.
    D) a $1.5 million increase in the money supply.
    E) there would be no change in the money supply.

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    https://brainmass.com/economics/demand-supply/reserve-ratio-money-supply-16625

    Solution Summary

    The reserve ratio and money supply for increase deposits are given.

    $2.19

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