a 1. Suppose that a bank's customer deposits $20,000 in her checking account. The required reserve ratio is 0.125. What
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a 1. Suppose that a bank's customer deposits $20,000 in her checking account. The required reserve ratio is 0.125. What
a 1. Suppose that a bank's customer deposits $20,000 in her checking account. The required reserve ratio is 0.125. What are the required reserves on the new deposit? What is the largest loan that the bank can make on the basis of the new deposit? What is the maximum the banking system can increase demand deposits as a result of this deposit?
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