Checking accounts in the banking system

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Under assets if reserves is $40, loans is $80, securities is $100, property is $200; and under liabilities and net worth , demand deposits is $200, capital stock is $120. All figures are in billions and assume that the required reserve ratio is 12.5%. Please give the answer of the following questions . 1. The maximum amount by which this commercial banking system can expand the supply of money by lending is? 2. If there is a deposit of $20 billion of new currency into checking accounts in the banking system , excess reserves will increase by?

Reference no: EM13972460

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