Suppose that the required reserve ratio is 2 percent and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits.in the banking system brought about by your deposit? What is the potential change in the money supply?

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
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Suppose that the required reserve ratio is 2 percent and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits.in the banking system brought about by your deposit? What is the potential change in the money supply?
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