need help with c, d and e On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies that hecarted into the DMV office in five wheelbarrows. The DMV had to count all these pennies and deposit them into the DMV bankaccount. After the DMV deposit and assuming a 5 percent reserve requirement, calculate the initial change inInstructions: Enter your responses as a whole number.a. money supply.6000b. deposits.3000c. total reserves.3000d. excess reserves.e. Calculate the cumulative change in the banking system in lending capacity.

C. 3,00,000 pennies=$3,000 Total reserve= Deposit * reserve requirement Total reserve= 3,000 *5%…

Answered: c. total reserves. $ 3000 d. excess…

c. total reserves. $ 3000 d. excess reserves. $ e. Calculate the cumulative change in the banking system in lending capacity. $

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 6SQP

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need help with c, d and e

On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies that he
carted into the DMV office in five wheelbarrows. The DMV had to count all these pennies and deposit them into the DMV bank
account. After the DMV deposit and assuming a 5 percent reserve requirement, calculate the initial change in
Instructions: Enter your responses as a whole number.
a. money supply.
6000
b. deposits.
3000
c. total reserves.
3000
d. excess reserves.
e. Calculate the cumulative change in the banking system in lending capacity.

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