posted by .

What will Happen in this Senerio?
If someone deposits $15,000.00 into a Bank and the required reserves is 15% what will be the total increase in checking account deposits in the banking system and what will be the maximum loans available to the public?


    do a little research, then take a shot. What do you think?

    Hint. Be sure to read up on the money multiplier.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Reserves-PLEASE HELP!

    The Norfolk Bank has $18,000 in excess reservces and the reserve ratio is 20 percent. Which level of checkable deposits and reserves might this bank hold?
  2. econ.

    If the reserve requirement is 20% and a bank doesn't have excess reserves, why would a $100 deposit lead to a greater than $100 increase in the money supply. because of the money multiplier. A $100 deposit (e.g., into a checking account) …
  3. intro to economics

    Please check my answers and I need help on some of the problems. I'm in a intro to economics course at a university. My professor did not provide a book for this course citing that she rarely had her students use it. So all I have …
  4. Macroeconomics

    If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will first turn to the: A) other member banks and borrow at the federal funds rate. B) Fed and borrow at the discount rate. C) open market …
  5. Macroeconomics

    A bank has issued 4 billion in transactions deposits and 2 billion in time deposits and other nontransactions deposits. Its other liabilities and net worth equal 1 billion. The bank has 100 million in total reserves. The only reserve …
  6. economics

    3. Draw a simple T-account for First National Bank which has $5,000 of deposits, a required reserve ratio of 10 percent, and excess reserves of $300. Make sure you balance sheet balances
  7. econ

    Suppose the reserve requirement ratio is 20 percent. Assuming no bank holds excess reserves and nobody withdraws cash, a $10,000 injection of new excess reserves by the Fed can create A) $2,000 in new checkable deposits B) $10,000 …
  8. Finance

    A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. a. If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have?
  9. Finance

    Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what level of deposits are being held?
  10. economics

    Suppose that the reserve ratio is .25, ad that a bank has actual reserves of $15,000, loans of $40,000, and demand deposits of $50,000. Excess reserves are $

More Similar Questions