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Economic-Federal REserve question-Help plz thank you?

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The Federal Reserve creates $1,000 (new money), gives it to Smith, who then deposits it in a bank. If the required reserve ratio is 10 percent, the maximum increase in the money supply is __________ and the banking system created __________ percent of the increase in the money supply.

$10,000; 10

$10,000; 100

$100,000; 10

$100,000; 90

$10,000; 90

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  1. $10,000; 90

    $1'000 / 10% = $1'000 / 0.1 = $10'000

    Created by central bank = $1'000 / $10'000 = 10%

    Created by banking system = 100% - 10% = 90%

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