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4. Show each of the following transactions on T-accounts, and then comment on how the money supply will eventually react in each case, if the
4. Show each of the following transactions on T-accounts, and then comment on how the money supply will eventually react in each case, if the required reserve ratio is 10% (a) You buy two tickets to a Yankees game for $200, paying by check. (Yes, you can do that electronically.) The Yankees deposit the check in their checking account (b) You walk up to the Yankee Stadium ticket window and pay $200 in cash, which you previously had in your pocket, for two tickets. The Yankees, carelessly, just let the $200 sit in their safe. (c) The Yankees take the $200 in cash to a sporting good store, where they buy 40 baseballs at $5 each. The storeowner deposits the $200 in cash in her checking account. (d) To help make ends meet, you borrow $200 from your bank. (Let's assume they will lend it to you!) The bank puts the $200 into your checking account (e) You withdraw the $200 and hold it in cash 4. Show each of the following transactions on T-accounts, and then comment on how the money supply will eventually react in each case, if the required reserve ratio is 10% (a) You buy two tickets to a Yankees game for $200, paying by check. (Yes, you can do that electronically.) The Yankees deposit the check in their checking account (b) You walk up to the Yankee Stadium ticket window and pay $200 in cash, which you previously had in your pocket, for two tickets. The Yankees, carelessly, just let the $200 sit in their safe. (c) The Yankees take the $200 in cash to a sporting good store, where they buy 40 baseballs at $5 each. The storeowner deposits the $200 in cash in her checking account. (d) To help make ends meet, you borrow $200 from your bank. (Let's assume they will lend it to you!) The bank puts the $200 into your checking account (e) You withdraw the $200 and hold it in cash
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