Suppose your mom sends you $500 for your birthday and you deposit it in your chequing account. The reserve ratio is 10%. If the bank decides to loan out the excess, based on this deposit the bank's loans have increased by and the bank's chequable deposits have increased by Select one: a. $50; $450 b. $450; $500 c. $50; $500 d. $500; $50

Suppose your mom sends you $500 for your birthday and you deposit it in your chequing account. The reserve ratio is 10%. If the bank decides to loan out the excess, based on this deposit the bank's loans have increased by and the bank's chequable deposits have increased by Select one: a. $50; $450 b. $450; $500 c. $50; $500 d. $500; $50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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