By how much would the econmys mony supply increase

Assignment Help Econometrics

Reference no: EM13245143

Assets

Liabilities

Reserves $150,000

Loans 250,000

Deposits $400,000

A: if the fed requires banks to hold 10 percent of deposits as reserves,how much in excess reserves does ABC now hold?

B. assume that all other banks hold only the required amount of reserves.if ABC DECIDES TO REDUCE ITS RESERVES TO ONLY THE REQUIRED AMOUNT ,BY HOW MUCH WOULD THE ECONMY'S MONY SUPPLY INCREASE?

Reference no: EM13245143

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