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< login.jupitered.com Jupiter 译百度部学200种语言互连海道全世界 Prefs Done AP Exam Practice: Mr. Ethan Placebo Li deposits RMB10,000 ca
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< login.jupitered.com Jupiter 译百度部学200种语言互连海道全世界 Prefs Done AP Exam Practice: Mr. Ethan Placebo Li deposits RMB10,000 cash into his checking account at Bank of China (BOC). The required reserve ratio is 20 percent. a. Calculate the maximum possible change in Bank of China (BOC)'s loans as a result of Mr. Li's deposit. b. After all adjustments in the banking system have occurred, calculate the maximum possible change in each of the following as a result of Mr. Li's deposit. i. Demand deposits in the banking system ii. The money supply c. Draw a correctly labeled graph of the money market and show the effect of Mr. Li's deposit on the nominal interest rate. d. Identify ONE reason that the change in the money supply could differ from the value calculated in part (b)(ii). e p. 10 of 13