Register

A. how much is the bank required to hold as reserves given its deposits of $8,000? b. how much are its excess reserves? c. by how much can the bank increase its loans?

A. how much is the bank required to hold as reserves given its deposits of $8,000? b. how much are its excess reserves? c. by how much can the bank increase its loans?
169k views
1 vote
A. how much is the bank required to hold as reserves given its deposits of $8,000?

b. how much are its excess reserves?
c. by how much can the bank increase its loans?

User Chris Kimpton
by
8.3k points

1 Answer

6 votes
A bank has excess reserves of $400,000 and makes a new loan for $50,000. If the bank faces a 25% required reserve ratio, by how much will the money supply increase when the loan is made?$200,000
User Bwvolleyball
by
8.2k points
← Prev Question Next Question →

No related questions found

Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories

Other Questions

Who was Adam Smith ? Anybody?
What can turn igneous rock into sediment?
In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
Link Copied!