In aggregate, all banks in the US have total deposits of $8.2 trillion. Banks lend out all money they have in excess of required reserves and borrowers redeposit 70% of the funds they borrow. What is the new total of deposits across all banks if the Federal Reserve changes the reserve requirement from 11% to the following percent? Note: answer in trillions of dollars, report up to two decimal places. 8% 10% 12% 15%
In aggregate, all banks in the US have total deposits of $8.2 trillion. Banks lend out all money they have in excess of required reserves and borrowers redeposit 70% of the funds they borrow. What is the new total of deposits across all banks if the Federal Reserve changes the reserve requirement from 11% to the following percent? Note: answer in trillions of dollars, report up to two decimal places. 8% 10% 12% 15%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In aggregate, all banks in the US have total deposits of $8.2 trillion. Banks lend out all money they have in excess of
8%
10%
12%
15%
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