How much have reserves of bank b? decreased

Reference no: EM133439434

Question: Assume a target reserve ratio of 15%. A cheque for $30000 is drawn on an account in Bank B and deposited in a checking deposit in Bank A. Round your final answers to 2 decimal places, if necessary. Do not enter comma "," or dollar sign ($) while entering your answer. a. By how much have the excess reserves of Bank A? increased? Answer for part 1 b. How much in the form of new loans is Bank A now able to extend to? borrowers? Answer for part 2 c. By how much have reserves of Bank B? decreased? Answer for part 3 d. By how much have excess reserves of Bank B? decreased? Answer for part 4 e. By how much has the money supply increased??

Reference no: EM133439434

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