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Calculate the reserve requirement if the money multiplier is equal to 14 and banks hold no excess reserves and consumers hold no cash. Round your answer to the nearest thousandth.

Respuesta :

The reserve requirement given the  money multiplier is 7.143%.

What is the money multiplier?

The money multiplier is the total increase in money supply given the reserve requirment. Reserve requirment is the percentage of deposits required by banks to be kept as reserves.

Reserve requirement = 1 / money multiplier

1/14 = 7.143

To learn more about money multiplier, please check: https://brainly.com/question/25812353