Question
Initial deposit --> university bank ---> loan --> bank #2. --loan--> bank #3---loan --> ($100). Deposit--> Deposit--> Deposit--> a. What volume of loans can the
Initial deposit --> university bank ---> loan --> bank #2. --loan--> bank #3---loan -->
($100). Deposit--> Deposit--> Deposit-->
a. What volume of loans can the banking system in the figure support? _____________
b. If the reserve requirement were 45 percent rather than 75 percent, what would the systems lending capacity be? ____________
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
