Question on money supply growth

Reference no: EM1370778

You take $100 that you had kept under your mattress and deposit it into your bank account. If this $100 stays in banking system as reserves and if banks hold reserves equal to 10% of deposits, by how much does the total amount of deposits in the banking system increase? By how much does the money supply increase?

Reference no: EM1370778

Questions Cloud

How much heat is required to melt iceberg : A car traveling at 16.00 m/s runs out of gas while traveling up a 19 degree slope. How far up the hill will it coast before starting to roll back down.

Important information about earth : what do you think would happen if the greenhouse gases are sequestered underground or is it safe to do so? Your thoughts, please?

Find how many times will keyboard be checked in an hour : Assume the processor scans keyboard every 100 ms. How many times will keyboard be checked in the 8-hour period?

Explain does preferable purchase have a perfected security : Explain Does Preferable Purchase have a perfected security interest in the laptop computer

Question on money supply growth : You take $100 that you had kept under your mattress and deposit it into your bank account. If this $100 stays in banking system as reserves and if banks hold reserves equal to 10% of deposits,

Would they hire another employee or buy another copier : One months ago, they added five workers and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier.

Capture the complexity of motivating individuals : Prepare a mini-scenario that captures the complexity of motivating individuals in a diverse workforce,and use a real situation from workplace.

What is the absolute pressure at a point : A bead slides without friction around a loop- the-loop. The bead is released from a height of 24.7 m from the bottom of the loop-the- loop which has a radius 9 m.

Explain fixed costs for a pizza shop : Explain fixed costs for a pizza shop, an internet service provider and a corn farm - What are the fixed costs of (a) a pizza shop, (b) an Internet service provider, (c) a corn farm?

User Account

All Pages