Given the balance sheet of BSP Bank as follows: Liabilities Deposits 30000 Assets Reserves 25000 Loans 5000 Given that the reserve-deposit ratio is 10% and you decide to deposit 1000 into BSP Bank. a) Solve for the change in reserves: b) Solve for the change in loans: c) Solve for the overall change in money supply:
Given the balance sheet of BSP Bank as follows: Liabilities Deposits 30000 Assets Reserves 25000 Loans 5000 Given that the reserve-deposit ratio is 10% and you decide to deposit 1000 into BSP Bank. a) Solve for the change in reserves: b) Solve for the change in loans: c) Solve for the overall change in money supply:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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hi how do u calculate these?
![Given the balance sheet of BSP Bank as follows:
Liabilities
Deposits 30000
Assets
Reserves 25000
Loans 5000
Given that the reserve-deposit ratio is 10% and you decide to deposit 1000 into BSP Bank.
a) Solve for the change in reserves:
b) Solve for the change in loans:
c) Solve for the overall change in money supply:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff854d2d0-dc2b-4ee5-b165-986e4d8e1c20%2F4d5e18a6-06a1-4b32-b6c8-a0def5878b83%2Fsnkotju_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given the balance sheet of BSP Bank as follows:
Liabilities
Deposits 30000
Assets
Reserves 25000
Loans 5000
Given that the reserve-deposit ratio is 10% and you decide to deposit 1000 into BSP Bank.
a) Solve for the change in reserves:
b) Solve for the change in loans:
c) Solve for the overall change in money supply:
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