Question
Please answer only this question that appears in front of you and not other questions Suppose that First national bank has the following balance sheet
Please answer only this question that appears in front of you and not other questions
Suppose that First national bank has the following balance sheet Position & that the required reservation on deposits is 25% Reserve 60m Loan 75m Securities 20m Deposits 150 m Bank capital 5 m e - If the Central bank decided to increase the Monetary base by increase give this bank loan by 100M, Illustrate the Multiplier deposit expansion process using T- Account & assuming that Bank use all its excess reserve to grant loan, carry on example though banks A, B, C starting by 100 checkable deposit & Required Reserve Ratio equal 5%.
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