If a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the required reserve ratio is (a) 4 percent? (b) 6 percent?
If a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the required reserve ratio is (a) 4 percent? (b) 6 percent?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section: Chapter Questions
Problem 12AA
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If a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the
(a) 4 percent?
(b) 6 percent?
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