Assume that a depository institution has excess reserves of $100 and the required reserve ratio is 10
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Assume that a depository institution has excess reserves of $100 and the required reserve ratio is 10 percent. What is the amount of checkable deposits at the depository institution resulting from new loans based on the excess reserves? Why is this amount different from the maximum amount of $1,000 in checkable deposits that can be generated by the banking system as a whole?
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Related Book For 
Financial System Of The Economy Principles Of Money And Banking
ISBN: 9780765622464
5th Edition
Authors: Maureen Burton,Bruce Brown
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