Answer to Question #63440 in Finance for kevin

Question #63440
If City Bank decides to loan out its excess reserves, by how much would the economy’s money supply increase?
1
Expert's answer
2016-11-17T11:29:15-0500
If City Bank decides to loan out its excess reserves (ER), then the economy’s money supply will increase by 1/ER, because all these money can be loaned many times again.

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