Suppose you win on a scratchoff lottery ticket and you decide to put all of your$3,500winnings in
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Question:
Suppose you win on a scratchoff lottery ticket and you decide to put all of your$3,500winnings in the bank. The reserve requirement is10%.
What is the maximum possible increase in the money supply as a result of your bankdeposit?
Maximum Increase???
Which events could cause the increase in the money supply to be less than itspotential? Check all that apply
Banks choose to loan out all excessreserves.
Banks decide to keep some excess reserves onhand.
Some loan recipients choose to hold some cash instead of depositing all of it inbanks.
All money loaned out is deposited back into the bankingsystem.
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