Assume there is $100 dollars in the economy that is deposited in a bank. Assume that there are multiple banks, and there is no other money in the economy at the moment. Also assume that once the money is deposited in a bank; it is lent and it eventually makes it back to another bank. At the moment, the FED has established that banks have to put in reserves 11% of all of their deposits. After 3 deposits, how much money in total is in the reserves of the banks? 238.70 29.50

Assume there is $100 dollars in the economy that is deposited in a bank. Assume that there are multiple banks, and there is no other money in the economy at the moment. Also assume that once the money is deposited in a bank; it is lent and it eventually makes it back to another bank. At the moment, the FED has established that banks have to put in reserves 11% of all of their deposits. After 3 deposits, how much money in total is in the reserves of the banks? 238.70 29.50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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