A bank currently has $100,000 in checkable deposits and $15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has in money-creating potential. If the reserve ratio is 14 percent, the bank has in money-creating potential. LO16.3 a. $20,000; $14,000 b. $3,000; $2,100 c. -$5,000; $1,000 d. $5,000; $1,000
A bank currently has $100,000 in checkable deposits and $15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has in money-creating potential. If the reserve ratio is 14 percent, the bank has in money-creating potential. LO16.3 a. $20,000; $14,000 b. $3,000; $2,100 c. -$5,000; $1,000 d. $5,000; $1,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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