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Riel Bank has a reserve ratio of 5%, $22 million issued in deposits, and $1,100,000 in actual reserves. Enter your responses below rounded to a whole number, Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $ 1100000 O and its initial excess reserves are $ b. If $110,000 in currency is withdrawn in the bank, its excess reserves become $ (110000) c. The money multiplier in this banking system is 20 O d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 2090000

Riel Bank has a reserve ratio of 5%, $22 million issued in deposits, and $1,100,000 in actual reserves. Enter your responses below rounded to a whole number, Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $ 1100000 O and its initial excess reserves are $ b. If $110,000 in currency is withdrawn in the bank, its excess reserves become $ (110000) c. The money multiplier in this banking system is 20 O d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 2090000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Riel Bank has a reserve ratio of 5%, $22 million issued in deposits, and $1,100,000 in actual reserves. Enter your responses below rounded to a whole number. Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $ 1100000 and its initial excess reserves are $ b. If $110,000 in currency is withdrawn in the bank, its excess reserves become $ (110000) c. The money multiplier in this banking system is 20 d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 2090000
Transcribed Image Text:Riel Bank has a reserve ratio of 5%, $22 million issued in deposits, and $1,100,000 in actual reserves. Enter your responses below rounded to a whole number. Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $ 1100000 and its initial excess reserves are $ b. If $110,000 in currency is withdrawn in the bank, its excess reserves become $ (110000) c. The money multiplier in this banking system is 20 d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 2090000
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