Consider an individual who immigrates to Canada and deposits $10,000 into the Canadian banking system. Suppose that all

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Consider An Individual Who Immigrates To Canada And Deposits 10 000 Into The Canadian Banking System Suppose That All 1 (36.6 KiB) Viewed 13 times

Consider an individual who immigrates to Canada and deposits $10,000 into the Canadian banking system. Suppose that all commercial banks have a target reserve ratio of 8 percent and that individuals do not hold any cash from the loans borrowed from the banking system. The eventual total change in deposits of the banking system after this impact is $ 125000. The eventual total change in reserves of the banking system after this impact is $ 10000. The eventual total change in loans of the banking system after this impact is $ 115000. Now suppose that all commercial banks still have a target reserve ratio of 8 percent, but that individuals choose to hold cash equal to 12 percent of their bank deposits. In this case, with the cash drain, the eventual total change in deposits of the banking system after the impact is $ please answer the question within the box other answers are correct