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the praline bank currently has $100,000 in deposits and has a reserve rate of 15%. a) what are the levels of reserves and loans? b)
the praline bank currently has $100,000 in deposits and has a reserve rate of 15%. a) what are the levels of reserves and loans? b) Draw up the banks balance sheet showing its initial position. c) Suppose that a customer deposits another $10,000 in the bank. Show the banks balance sheet aster the deposit and the bank has loaned out the excess reserves? d) What is the money multiplier? e) What is the change in the economy's money supply as a result of the deposit in part c)
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