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Consider an individual who moves to Canada and brings with him his life savings of $60,000, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio; 4 percent cash drain; 6 percent excess reserves: Overall change in deposits = $. Overall change reserves = $. (Round your responses to the nearest dollar.) b. 16 percent target reserve ratio; 5 percent cash drain; 5 percent excess reserves: Overall change in deposits $. Overall change reserves = $ (Round your responses to the nearest dollar.)

Consider an individual who moves to Canada and brings with him his life savings of $60,000, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio; 4 percent cash drain; 6 percent excess reserves: Overall change in deposits = $. Overall change reserves = $. (Round your responses to the nearest dollar.) b. 16 percent target reserve ratio; 5 percent cash drain; 5 percent excess reserves: Overall change in deposits $. Overall change reserves = $ (Round your responses to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Consider an individual who moves to Canada and brings with him his life savings of $60,000, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio; 4 percent cash drain; 6 percent excess reserves: Overall change in deposits = $ . Overall change in reserves = $ (Round your responses to the nearest dollar.) %3D b. 16 percent target reserve ratio; 5 percent cash drain; 5 percent excess reserves: Overall change in deposits = $ Overall change in reserves = $ (Round your responses to the nearest dollar.)
Transcribed Image Text:Consider an individual who moves to Canada and brings with him his life savings of $60,000, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio; 4 percent cash drain; 6 percent excess reserves: Overall change in deposits = $ . Overall change in reserves = $ (Round your responses to the nearest dollar.) %3D b. 16 percent target reserve ratio; 5 percent cash drain; 5 percent excess reserves: Overall change in deposits = $ Overall change in reserves = $ (Round your responses to the nearest dollar.)
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