Questions tagged [reserve-requirement-ratio]

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Bank Reserve ratio

It's known that the money multiplier is 7 and the ratio of cash held by the public to their deposits is 1 to 20. Which of the following must be the bank's reserve ratio? My attempt, Money multiplier=1/...
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Can a bank have deposits at another bank?

Can a bank create an account at another bank and get a loan in the form of deposits at that bank? If so, could these deposits at the other bank be used to satisfy the first bank's reserve/liquidity ...