Assume the following data describe the condition of the banking system. What would the following values be immediately after a change in the required reserve ratio from 0.20 to 0.15? Instructions: Enter your responses for parts a-d as a whole number. Round your responses for parts e-fto one decimal place. a. Total deposits b. Total reserves c. Required reserves d. Excess reserves e. Money multiplier 1. Unused lending capacity Required Reserve Ratio If 20 percent $100 billion 30 billion 20 billion 10 billion 5 $50 billion If 15 percent billion billion billion billion billion

Assume the following data describe the condition of the banking system. What would the following values be immediately after a change in the required reserve ratio from 0.20 to 0.15? Instructions: Enter your responses for parts a-d as a whole number. Round your responses for parts e-fto one decimal place. a. Total deposits b. Total reserves c. Required reserves d. Excess reserves e. Money multiplier 1. Unused lending capacity Required Reserve Ratio If 20 percent $100 billion 30 billion 20 billion 10 billion 5 $50 billion If 15 percent billion billion billion billion billion

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 16P

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If banks require 10% of transaction deposit in reserve, How much is the required reserve? How much is the excess reserve?
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