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Consider an individual who immigrates to Canada and deposits $1,000 in Canadian currency into the Canadian banking system. Suppose all commercial banks have a
Consider an individual who immigrates to Canada and deposits $1,000 in Canadian currency into the Canadian banking system. Suppose all commercial banks have a target reserve ratio of 15 percent and individuals choose to hold cash equal to 15 percent of their bank deposits a The eventual total change in deposits is equal to 1/(v +c) times the new deposit, where vis the target reserve ratio and c is the rato of cash to deposits. In this case, the eventual total change in deposits is $(Round your response to the nearest dollar) b. Using the same numbers, the eventual total change in reserves is $ (Round your response to the nearest dollar) c. Again using the same case, the eventual total change in loans is $(Round your response to the nearest dollar)
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