explain what happened to the currency-todeposit ratio (C/D) and the excess reserves-todeposit ratio (ER/D) during the financial crisis of 2007–2009

explain what happened to the currency-todeposit ratio (C/D) and the excess reserves-todeposit ratio (ER/D) during the financial crisis of 2007–2009

1. Briefly explain what happened to the currency-todeposit ratio (C/D) and the excess reserves-todeposit ratio (ER/D) during the financial crisis of 2007–2009. What impact did these changes have on the size of the money multiplier?
2. Explain whether you agree with the following observation: “If the required reserve ratio were zero, the process of multiple deposit expansion would go on forever.”

READ ALSO :