Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 25%. Yakov, a client of First Main Street Bank, deposits $1,800,000 into his checking account at First Main Street Bank. Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans)
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 25%. Yakov, a client of First Main Street Bank, deposits $1,800,000 into his checking account at First Main Street Bank. Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans)
Chapter15: Money Creation
Section: Chapter Questions
Problem 8SQ
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Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves . The required reserve ratio is 25%. Yakov, a client of First Main Street Bank, deposits $1,800,000 into his checking account at First Main Street Bank.
Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).
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