Create new money

Discussion 1:)

You deposit a $1,000 scholarship check in the bank. If the required reserve ratio is 10 percent, explain how the banking system will create new money and how much money can potentially be created.
Requirements: 250 words minimum.

Discussion 2:)

Indicate how changes in monetary policy are transmitted to the goods and services market? Discuss for the case of an expansion in the money supply.
Requirements: 250 words.


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