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In Hugoland, the money supply is $8 million and reserves are $1 million. Assuming that people hold only deposits and no currency and that banks hold no excess reserves, then the reserve requirement is?

Respuesta :

If  the money supply is $8 million and reserves are $1 million, reserve requirment is 12.50%.

What is the reserve requirment?

Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.

Reserve requirment = (reserves / money supply) x 100

(1 / 8) x 100 = 12.50%

To learn more about reserve requirment, please check: https://brainly.com/question/25812353

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