ou just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 1212%, how much will your deposit increase the total value of checkable bank deposits? $     If the reserve requirement is 44%, how much will your deposit increase the total value of checkable deposits? $     Increasing the reserve requirement     the money supply.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
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ou just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar.
If the reserve requirement is 1212%, how much will your deposit increase the total value of checkable bank deposits?
$
 
 
If the reserve requirement is 44%, how much will your deposit increase the total value of checkable deposits?
$
 
 
Increasing the reserve requirement 
 
 the money supply.
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