A bank currently has $100,000 in checkable deposits and $15,000 in actual reserves. If the reserve ratio

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A bank currently has $100,000 in checkable deposits and

$15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has in money-creating potential. If the reserve ratio is 14 percent, the bank has in money-creating potential.

a. $20,000; $14,000

b. $3,000; $2,100

c. −$5,000; $1,000

d. $5,000; $1,000

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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