Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 17, Problem 4Q
To determine

The effect on reserves, checkable deposits, and themonetary base if a bank depositor withdraws $1,000 of currency from an account

Concept introduction:

The depositors get the amount from the reserves

Monetary base: The total amount of money that iseither circulated in the hand of public or in the commercial bank's deposit held in the Federal Reserve's asreserves.

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