Sapling Learning macmilan leaming Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? $ Number Which events could cause the increase in the money supply to be less than its potential? Check all that apply. ☐ Banks decide to keep some excess reserves on hand. All money loaned out is deposited back into the banking system. Some loan recipients choose to hold some cash instead of depositing all of it in banks. Banks choose to loan out all excess reserves. Hint Previous Check Answer Next
Sapling Learning macmilan leaming Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? $ Number Which events could cause the increase in the money supply to be less than its potential? Check all that apply. ☐ Banks decide to keep some excess reserves on hand. All money loaned out is deposited back into the banking system. Some loan recipients choose to hold some cash instead of depositing all of it in banks. Banks choose to loan out all excess reserves. Hint Previous Check Answer Next
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Sapling Learning
macmilan leaming
Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the
bank. The reserve requirement is 10%.
What is the maximum possible increase in the money supply as a result of your bank deposit?
$
Number
Which events could cause the increase in the money supply to be less than its potential?
Check all that apply.
☐
Banks decide to keep some excess reserves on hand.
All money loaned out is deposited back into the banking
system.
Some loan recipients choose to hold some cash instead of
depositing all of it in banks.
Banks choose to loan out all excess reserves.
Hint
Previous Check Answer
Next
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