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Q2 how to generate the creation fo deposits according to Table 1 Table 1 Creation of Deposits (assuming 10% reserve requirement and a $100 increase
Q2 how to generate the creation fo deposits according to Table 1
Table 1 Creation of Deposits (assuming 10% reserve requirement and a $100 increase in reserves) TABLE 1 Creation of Deposits (assuming 10% reserve requirement and a $100 million increase in reserves) Increase in Increase in Increase in Bank Deposits (5) Loans (S) Reserves (S) First National 0.00 100.00 m 0.00 A 100.00 m 90.00 m 10.00 m 90.00 m 81.00 m 9.00 m C 81.00 m 72.90 m 8.10 m D 72.90 m 65.61 m 7.29 m E 65.61 m 59.05 m 6.56 m F 59.05 m 53.14 m 5.91 m B Total for all banks 1,000.00 m 1,000.00 m 100.00 m Step by Step Solution
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