In aggregate, all banks in the US have total deposits of $8.2 trillion. Banks lend out all money they have in excess of required reserves and borrowers redeposit 70% of the funds they borrow. What is the new total of deposits across all banks if the Federal Reserve changes the reserve requirement from 11% to the following percent? Note: answer in trillions of dollars, report up to two decimal places. 8% 10% 12% 15%

In aggregate, all banks in the US have total deposits of $8.2 trillion. Banks lend out all money they have in excess of required reserves and borrowers redeposit 70% of the funds they borrow. What is the new total of deposits across all banks if the Federal Reserve changes the reserve requirement from 11% to the following percent? Note: answer in trillions of dollars, report up to two decimal places. 8% 10% 12% 15%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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