Examine the balance sheet for a bank below: Assets Liabilities Reserves 600 000 Demand Deposits 5 230 000 Loans 2 000 000 Capital 1 250 000 Buildings 3 880 000 If the desired reserve ratio changes to 5 percent and the bank were to loan out those excess reserves, what the potential expansion in demand deposits (increase in MS) in the banking system? ***You just need to put the number in your answer, no units or commas***
Examine the balance sheet for a bank below: Assets Liabilities Reserves 600 000 Demand Deposits 5 230 000 Loans 2 000 000 Capital 1 250 000 Buildings 3 880 000 If the desired reserve ratio changes to 5 percent and the bank were to loan out those excess reserves, what the potential expansion in demand deposits (increase in MS) in the banking system? ***You just need to put the number in your answer, no units or commas***
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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