Assume excess reserves = R2 million; the excess ratio : required reserves = 2:1; Calculate the total reserves; reserve requirement, and total deposits. A) R1mil, 10%, R10mil B) R1mil, 10%, R5mil C) R3mil, 5%, R20mil D) R3mil, 5%, R10mil
Assume excess reserves = R2 million; the excess ratio : required reserves = 2:1; Calculate the total reserves; reserve requirement, and total deposits. A) R1mil, 10%, R10mil B) R1mil, 10%, R5mil C) R3mil, 5%, R20mil D) R3mil, 5%, R10mil
Chapter19: Money Creation
Section: Chapter Questions
Problem 7SQ
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Question
Assume
A) R1mil, 10%, R10mil
B) R1mil, 10%, R5mil
C) R3mil, 5%, R20mil
D) R3mil, 5%, R10mil
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