When answering this question, don't round up your answer. Suppose that for each additional dollar of excess reserves, the money supply increases by 18. If a commercial bank converts any excess reserves into new loans, what is the value of new loans made by this bank after a $61212 deposit? 57{ How much must this commercial bank keep as reserves of a new $61212 deposit? 341

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter25: Money Creation
Section: Chapter Questions
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When answering this question, don't round up your answer. Suppose that for
each additional dollar of excess reserves, the money supply increases by 18.
If a commercial bank converts any excess reserves into new loans, what is the
value of new loans made by this bank after a $61212 deposit?
57{
How much must this commercial bank keep as reserves of a new $61212
deposit?
341
Transcribed Image Text:When answering this question, don't round up your answer. Suppose that for each additional dollar of excess reserves, the money supply increases by 18. If a commercial bank converts any excess reserves into new loans, what is the value of new loans made by this bank after a $61212 deposit? 57{ How much must this commercial bank keep as reserves of a new $61212 deposit? 341
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