What happened to the currency to deposit ratio

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Reference no: EM131303110

1. Briefly explain what happened to the currency-todeposit ratio (C/D) and the excess reserves-todeposit ratio (ER/D) during the financial crisis of 2007-2009. What impact did these changes have on the size of the money multiplier?

2. Explain whether you agree with the following observation: "If the required reserve ratio were zero, the process of multiple deposit expansion would go on forever."

Reference no: EM131303110

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