Question
Total reserves = 90 billion Transaction deposits=900 billion Cash held by public= 100 billion Reserve requirement = .1 What would the lending capacity of the
Total reserves = 90 billion
Transaction deposits=900 billion
Cash held by public= 100 billion
Reserve requirement = .1
What would the lending capacity of the banking system be after this deposit?
and
How large would the money supply be if the banks fully utilized their lending capacity?
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Dynamic Business Law
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs
6th Edition
1260733971, 978-1260733976
