CIBC and BMO both start with a target reserve ratio of 0.05 and no excess reserves. CIBC's customer writes a check to Boriana for $100. Boriana deposits the check in her account at BMO. What decrease in loans to its customers will bring CIBC back to having excess reserves equal to zero? (Round to two decimal place and do not enter the $ sign. If your answer is $6.14, enter 6.1. If your answer is $6.15, enter 6.2. Do NOT enter the - sign.)

CIBC and BMO both start with a target reserve ratio of 0.05 and no excess reserves. CIBC's customer writes a check to Boriana for $100. Boriana deposits the check in her account at BMO. What decrease in loans to its customers will bring CIBC back to having excess reserves equal to zero? (Round to two decimal place and do not enter the $ sign. If your answer is $6.14, enter 6.1. If your answer is $6.15, enter 6.2. Do NOT enter the - sign.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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