26. Sally's grandmother has kept $100,000 in a cookie jar for years and gives it so Sally, who immediately puts it into her bank in a savings account. The bank has a 20% reserve rate. Which of the following is true? 1. Excess reserves increase by $20,000 II. The money supply increases by as much as $120,000 III. There is no change in the bank's money supply I a. I only b. II only C. I and II d. None of the above 4 DELL 33 US 19
26. Sally's grandmother has kept $100,000 in a cookie jar for years and gives it so Sally, who immediately puts it into her bank in a savings account. The bank has a 20% reserve rate. Which of the following is true? 1. Excess reserves increase by $20,000 II. The money supply increases by as much as $120,000 III. There is no change in the bank's money supply I a. I only b. II only C. I and II d. None of the above 4 DELL 33 US 19
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![26. Sally's grandmother has kept $100,000 in a cookie jar for years and gives it so Sally, who immediately
puts it into her bank in a savings account. The bank has a 20% reserve rate. Which of the following is
true?
1.
Excess reserves increase by $20,000
II.
The money supply increases by as much as $120,000
III.
There is no change in the bank's money supply
I
a.
I only
b. II only
C.
I and II
d. None of the above
4
DELL
33
US 19](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff09c6363-c6de-4acd-ad82-9b3ad856525e%2F10f99bb0-a58b-42dc-bd97-335c92b211fd%2Flfay1l_processed.png&w=3840&q=75)
Transcribed Image Text:26. Sally's grandmother has kept $100,000 in a cookie jar for years and gives it so Sally, who immediately
puts it into her bank in a savings account. The bank has a 20% reserve rate. Which of the following is
true?
1.
Excess reserves increase by $20,000
II.
The money supply increases by as much as $120,000
III.
There is no change in the bank's money supply
I
a.
I only
b. II only
C.
I and II
d. None of the above
4
DELL
33
US 19
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