1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is

 

 

2) If the reserve requirement ratio (RR?) is 0.20, the simple deposit multiplier is

 

 

3) Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent. If the Federal Reserve reduces the required reserve ratio to 15 percent, then the bank will now have excess reserves of

 

 

4) You earn? $500 a month, currently have? $200 in? currency, $100 in your checking? account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. Using the M1 measure of money, you have

 

Answer rating: 100% (QA)

Answers to Money and Banking Questions 1 Maximum Loan GivenDeposit 2000Reserve Ratio 10 Calculate ex... View the full answer