false
Small Jason Hu

Budget: $15

Solved!

You purchase a $1000 government bond from a colleague by giving them a cheque written from your account. They deposit this cheque with RBC. What is the final change in money supply if there is no cash drain. The target reserve ratio is 25%.

Answer

Small Tutor Aaron Lee

change in money supply = change in currency held by public + change in deposits=0...


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