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United StatesEconomicsQuick questions
Unit 4: Financial Sector
Quick questions on Banking and money creation - AP Macroeconomics Topic 4.4
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is q1?Show answer
Write the formula for the money multiplier. [1 point]
What is q2?Show answer
A \$1,000 deposit with a 10% reserve ratio. What are the excess reserves and the maximum money created? [2 points]
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