9. (LO 3) Table 8.8 is the balance sheet for all the banks combined in the banking

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9. (LO 3) Table 8.8 is the balance sheet for all the banks combined in the banking system.

a) Which one of the figures is part of the money supply?

b) If all banks maintain 100 percent reserves, what happens to the money supply eventually if $500 cash is deposited into one of the banks in the system?

c) If none of the banks maintains reserves, what happens to the money supply if $500 cash is deposited into one of the banks in the system?

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Principles Of Macroeconomics

ISBN: 9780226818399

8th Edition

Authors: Sayre, J.E.; Morris, A.J.

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