Find the change in the reserve requirement needed

Reference no: EM1371113

Suppose that the banking system has no excess reserves.

· Find the maximum amount of check-writing deposits when bank reserves total $10,000 and the reserve requirement is (1) .10, (2) .09, and (3) .08.

· Find the change in the reserve requirement needed to increase the maximum amount of check-writing deposits from $100,000 to $102,564 when reserves total $10,000 and the initial reserve requirement is .10.

Reference no: EM1371113

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