Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $20,000 and holds this as cash for future expenses. If this $20,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 10 percent? Instructions: Enter your response as a whole number. The money supply will decrease by $ 200,000
Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $20,000 and holds this as cash for future expenses. If this $20,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 10 percent? Instructions: Enter your response as a whole number. The money supply will decrease by $ 200,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $20,000 and holds this as cash for future
expenses. If this $20,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 10
percent?
Instructions: Enter your response as a whole number.
The money supply will decrease by $ 200,000
Assume the banking system contains the following amounts. Use this information to answer five questions.
Total reserves
Transactions deposits
Cash held by public
Reserve requirement
c. What would the lending capacity of the banking system be after this deposit?
$
$80 billion
$800 billion
$400 billion
0.10
$
100 billion
d. How large would the money supply be if the banks fully utilized their lending capacity?
1180 billion
ive A412](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd58560c-94a2-42e6-b661-75f755baa813%2Ffbce22cd-3157-42f3-a4f2-16db5e3278e5%2Fr746re8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $20,000 and holds this as cash for future
expenses. If this $20,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 10
percent?
Instructions: Enter your response as a whole number.
The money supply will decrease by $ 200,000
Assume the banking system contains the following amounts. Use this information to answer five questions.
Total reserves
Transactions deposits
Cash held by public
Reserve requirement
c. What would the lending capacity of the banking system be after this deposit?
$
$80 billion
$800 billion
$400 billion
0.10
$
100 billion
d. How large would the money supply be if the banks fully utilized their lending capacity?
1180 billion
ive A412
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