Assets Liabilities Reserve 200 Deposits 1000 Loan 800 Total 1000 Total 1000 1. Assuming the bank does not hold any excess reserve, what is the required reserve ratio? 2. What is The value of deposit expansion multiplier ?

Assets Liabilities Reserve 200 Deposits 1000 Loan 800 Total 1000 Total 1000 1. Assuming the bank does not hold any excess reserve, what is the required reserve ratio? 2. What is The value of deposit expansion multiplier ?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 2WNG

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Question

Assets
Liabilities
Reserve
200
Deposits
1000
Loan
800
Total
1000
Total
1000
1.
Assuming the bank does not hold any excess reserve, what is the required reserve ratio?
2.
What is The value of deposit expansion multiplier ?
Note : show your calculations
В
I
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