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Someone deposits $50,000 in her checking account. Prior to her deposit she was the only person in the US that held cash. All banks in
Someone deposits $50,000 in her checking account. Prior to her deposit she was the only person in the US that held cash. All banks in the US are indentical and hold 2% of their checking deposits as excess reserves. If the balance sheet shows assets reserves $1,500,000, loans $14,000,000 and liabilities checking deposit $15,000,000 and networth is $500,000. How much did the money stock roughly equal 1 change as a result of her deposit.
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