Jamie made a cash deposit to her checking account. This resulted in an increase in the money supply of $23,000. The reserve requirement is 4%, and all banks keep excess reserves equal to 4% of checking deposits. What was the amount of Jamie's deposit? OA. $1.840 OB. $2,000 OC. $920 OD. $1,000
Jamie made a cash deposit to her checking account. This resulted in an increase in the money supply of $23,000. The reserve requirement is 4%, and all banks keep excess reserves equal to 4% of checking deposits. What was the amount of Jamie's deposit? OA. $1.840 OB. $2,000 OC. $920 OD. $1,000
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 5CQ
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![Jamie made a cash deposit to her checking account. This resulted in an increase in the money supply of $23,000. The reserve requirement is 4%, and all banks keep excess reserves equal to 4% of checking
deposits.
What was the amount of Jamie's deposit?
A. $1.840
B. $2,000
C. $920
D. $1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8ea3cf9-00fb-4aeb-88b8-5ec2226200f4%2Fae90bc9a-7b98-4840-bab5-4a73593363f9%2Faskw9al_processed.png&w=3840&q=75)
Transcribed Image Text:Jamie made a cash deposit to her checking account. This resulted in an increase in the money supply of $23,000. The reserve requirement is 4%, and all banks keep excess reserves equal to 4% of checking
deposits.
What was the amount of Jamie's deposit?
A. $1.840
B. $2,000
C. $920
D. $1,000
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