What will be the system money supply

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Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent, and there are no leakages in the system.

What is the size of the money multiplier?

What will be the system"s money supply?

Reference no: EM13506683

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What would be the money multiplier : The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages.

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