Question
ModernBank RealBank Assets Liabilities Assets Liabilities Base Money 125 Payable on demand 300 Base Money 80 Payable on demand 300 Loans 175 Loans 220 What
| ModernBank |
| RealBank |
|
| Assets | Liabilities | Assets | Liabilities |
| Base Money 125 | Payable on demand 300 | Base Money 80 | Payable on demand 300 |
| Loans 175 |
| Loans 220 |
|
What will be the amount of broad money in the whole banking system if RealBank creates additional 100 as a new loan?
495
400
320
700
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
