If the required reserve ratio is 10 percent, calculate the potential change in demand deposits under the

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If the required reserve ratio is 10 percent, calculate the potential change in demand deposits under the following circumstances:
a. You take $5,000 from under your mattress and deposit it in your bank.
b. You withdraw $50 from the bank and leave it in your wallet for emergencies.
c. You write a check for $2,500 drawn on your bank (Wells Fargo) to an auto mechanic who deposits the funds in his bank (Bank of America).

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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