2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio should be __________ if the central bank would like to expand the money supply for another $150,000 at the maximum, given that the public's currency holdings are constant. 2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the maximum amount of deposits commercial banks can hold would be $_
2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio should be __________ if the central bank would like to expand the money supply for another $150,000 at the maximum, given that the public's currency holdings are constant. 2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the maximum amount of deposits commercial banks can hold would be $_
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio
should be if the central bank would like to expand the money supply for another
$150,000 at the maximum, given that the public's currency holdings are constant.
2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the
maximum amount of deposits commercial banks can hold would be $_](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6f9276f-18a1-43c6-9100-cb09a09616e4%2Fa5cb9dae-70fe-4136-924e-11a2aca7da47%2Fmlpbm7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio
should be if the central bank would like to expand the money supply for another
$150,000 at the maximum, given that the public's currency holdings are constant.
2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the
maximum amount of deposits commercial banks can hold would be $_
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