What would be the resulting excess reserves

Reference no: EM131443690

Question: Assume there was a new $100,000 deposit into a checking account at a bank.

a. What would be the resulting excess reserves created by that deposit if banks faced a reserve requirement of

b. How many additional dollars could that bank lend out as a result of that deposit if banks faced a reserve requirement of

866_Percent 1.png

c. How many additional dollars of money could the banking system as a whole create in response to such a new deposit if banks faced a reserve requirement of

1508_Percent 2.png

Reference no: EM131443690

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