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Author Question: Reserves, Deposits and the Money MultiplierSuppose you deposit $8000 of currency into your checking ... (Read 119 times)

jenniferbaugh1984

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Question 1

Reserves, Deposits and the Money Multiplier

Suppose you deposit $3000 of currency into your checking account at your bank and the required reserve ratio (RR) is 25%. As a result of your deposit, your bank's excess reserves increase by ________.
◦ $12,000
◦ $2250
◦ $3000
◦ $750

Question 2

Reserves, Deposits and the Money Multiplier

Suppose you deposit $8000 of currency into your checking account at your bank and the required reserve ratio (RR) is 2%. As a result of your deposit, checking account deposits in the banking system as a whole (including your original deposit) could eventually increase up to a maximum of ________.
◦ $8000
◦ $400,000
◦ $7840
◦ $200,000


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Marked as best answer by jenniferbaugh1984 on Nov 23, 2022

Jim457

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jenniferbaugh1984

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Reply 2 on: Nov 23, 2022
Gracias!


dawsa925

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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