Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is equal to 3%. One bank in this economy now recieves an addition $300 of new deposits. What is the total quantity of new bank desposits that this will generate across the entire banking system (in dollars)? Note: round all answers to two decimal places. Do not include currency signs in your answer.
Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is equal to 3%. One bank in this economy now recieves an addition $300 of new deposits. What is the total quantity of new bank desposits that this will generate across the entire banking system (in dollars)? Note: round all answers to two decimal places. Do not include currency signs in your answer.
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 10P
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Question
![Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is
equal to 3%.
One bank in this economy now recieves an addition $300 of new deposits.
What is the total quantity of new bank desposits that this will generate across the entire banking
system (in dollars)?
Note: round all answers to two decimal places. Do not include currency signs in your answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cbb2873-c9d6-46f3-a59f-04ec85558230%2F3e969f22-faee-48d7-a1bd-2fab27b07cca%2Fyfpyd8f_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is
equal to 3%.
One bank in this economy now recieves an addition $300 of new deposits.
What is the total quantity of new bank desposits that this will generate across the entire banking
system (in dollars)?
Note: round all answers to two decimal places. Do not include currency signs in your answer.
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