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Author Question: Reserves, Deposits and the Money MultiplierSuppose you deposit $9000 of currency into your checking ... (Read 35 times)

parker123

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Question 1

Reserves, Deposits and the Money Multiplier

Suppose you deposit $7000 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 reserves immediately increase by ________.
◦ $28,000
◦ $280
◦ $1750
◦ $7000

Question 2

Reserves, Deposits and the Money Multiplier

Suppose you deposit $9000 of currency into your checking account at your bank and the required reserve ratio (RR) is 2%. As a result of your deposit, your bank's required reserves increase by ________.
◦ $180
◦ $4500
◦ $450,000
◦ $9000


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Marked as best answer by parker123 on Nov 23, 2022

heathercab

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parker123

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Reply 2 on: Nov 23, 2022
Excellent


ryhom

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Reply 3 on: Yesterday
:D TYSM

 

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