# Econ 102 Final Exam

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### Suppose you deposit \$2,000 in currency into your checking account. The reserve ratio is 10%. Assuming that banks do not hold any excess reserves, what is the maximum increase in checking account deposits that can result from your \$2,000 initial deposit? What is the maximum increase in the money supply?

The maximum increase in checking account deposits is \$20,000. The maximum increase in
the money supply is \$18,000.

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