Explain lending process, Assume the reserve ratio is 20%.If

Explain lending process

Reference no: EM13175344

Show a T-account for a bank when you make a deposit of $1000 into your checking account. Assume the reserve ratio is 20%.

If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?

Reference no: EM13175344

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