Question
Use the following information to answer questions 4 through 6: Consider the following balance sheet for TD. Assets Liabilities Reserves 493 Deposits 2900 Loans 2407
Use the following information to answer questions 4 through 6:
Consider the following balance sheet for TD.
Assets Liabilities
Reserves 493 Deposits 2900
Loans 2407
1.Suppose that TD is a typical bank and keeps only the required reserves. Given this data, what is the money multiplier?
The money multiplier is 5.882352941.
2.Suppose that TD is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $700. Given this data, what is the total change in the M1 Money Supply?
3.Suppose that someone deposited $700 at TD Bank. Given this data, what is the minimum amount by which the money supply will increase?
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Fundamentals of Physics
Authors: Jearl Walker, Halliday Resnick
8th Extended edition
978-0471758013
