Economy, asked by anilagopilalotwgef, 10 months ago

if cash ratio is 20 percent credit creation multiplier would be?

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Answered by Adhi8580
1

Answer:

The deposit multiplier is the inverse of the required reserves. So if the required reserve ratio is 20%, the deposit multiplier ratio is 80%. It is the ratio of the amount of a bank's checkable deposits—demand accounts against which checks, drafts, or other financial instruments can be negotiated—to its reserve amount.

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