Imagine that Chastity deposits $25,000 of currency into her checking account deposit at Bank A and...
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Imagine that Chastity deposits $25,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 15%. As a result of Chastity's deposit (show your calculations for all steps in this problem): • Bank A's reserves immediately increase by $_ • Bank A's required reserves increase by $. • Bank A's excess reserves increase by $_ __. • Bank A can make a maximum new loan of $ Checking account deposits in the banking system as a whole (including the original deposit) could eventually increase to a maximum of $__ • How does this impact the bank's lending power to make new loans based on Chastity's deposit? . What is the money multiplier's impact on the economy? Imagine that Chastity deposits $25,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 15%. As a result of Chastity's deposit (show your calculations for all steps in this problem): • Bank A's reserves immediately increase by $_ • Bank A's required reserves increase by $. • Bank A's excess reserves increase by $_ __. • Bank A can make a maximum new loan of $ Checking account deposits in the banking system as a whole (including the original deposit) could eventually increase to a maximum of $__ • How does this impact the bank's lending power to make new loans based on Chastity's deposit? . What is the money multiplier's impact on the economy?
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