Suppose that Edison makes a new cash deposit of $$75,000$ at his bank.

Suppose that the bank is required only to keep new cash reserves equal to $20\%.$ Then the maximum amount Edison's deposit will the money supply is

$

$.$

Which of the following assumptions must hold to ensure that the money creation process initiated by Edison's deposit reaches its potential? Check all that apply.

All banks in the banking system lend all of their excess reserves.

All borrowers quickly spend all of their newly acquired funds.

Some borrowers cash the newly acquired funds.

Some borrowers spend only a fraction of the borrowed funds.