Suppose total reserve in bank A increased by $72,800,900. If required reserve ratio for the banking system

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Suppose total reserve in bank A increased by $72,800,900. If required reserve ratio for the banking system is set at 5.9%, (0.059),

a. Calculate bank A's required reserve.

b. By how much will total money supply increase if bank A, and all subsequent banks, lend out the excess reserve out of the initial $72,800,900 increase in bank A's reserve?

Related Book For answer-question

Managing in a Global Economy Demystifying International Macroeconomics

ISBN: 978-1285055428

2nd edition

Authors: John E. Marthinsen

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Posted Date: Mar 29, 2024 06:17 AM

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Suppose total reserve in bank A increased by $72,800,900. If required reserve ratio for the banking system

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Managing in a Global Economy Demystifying International Macroeconomics

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