If you deposit $40 into a checking account, and your bank has a 10% reserve requirement, the bank's excess reserves will rise by $

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 5CQ
Question
If you deposit $40 into a checking account, and your bank has a 10% reserve requirement, the bank's excess reserves will rise by $
Transcribed Image Text:If you deposit $40 into a checking account, and your bank has a 10% reserve requirement, the bank's excess reserves will rise by $
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