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Consider the following scenario. Suppose that the reserve requirement is 20%, and Leroy deposits a $1,000 of cash that he received as a graduation gift in his checking account. Suppose the bank holds an
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21 votes
Consider the following scenario. Suppose that the reserve requirement is 20%, and Leroy deposits a $1,000 of cash that he received as a graduation gift in his checking account. Suppose the bank holds an additional 1% of all deposits as an excess reserve. How much does the monetary base change?

A. $0
B. $1000
C. $800
D. $4761.91

User Anandr
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13 votes
13 votes
Answer:



Your answer would be c
User Eric Olson
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