An Economy Starts With 35 000 In Currency All This Currency Is Deposited Into A Single Bank The T Account Of The Ban 1 (18.04 KiB) Viewed 16 times
Keep in mind that excess reserves are reserves in excess of whatis required. How much money will be created given the informationhere? Assume the bank above is the only bank that holds excessreserves.
a. $35,000
b. $85,000
c. None of these
d. $105,000
e. $15,000
An economy starts with $35,000 in currency. All this currency is deposited into a single bank. The T- account of the bank is shown below. Assets Reserves Excess Reserves Loans $5000 $15000 $15000 Liabilities Deposits $35,000
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!