You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reser

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reser

Post by answerhappygod »

You Just Deposited 4 000 In Cash Into A Checking Account At The Local Bank Assume That Banks Lend Out All Excess Reser 1
You Just Deposited 4 000 In Cash Into A Checking Account At The Local Bank Assume That Banks Lend Out All Excess Reser 1 (50.14 KiB) Viewed 14 times
You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 8%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement decreases the money supply. $ $
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”