Suppose you remove $1000 from under your mattress and deposit it in first national bank. Using a balance sheet, show the impact of your deposit on the banks assets and liabilities. If the required reserve ratio is 10%,  what is the maximum amount the bank can loan from this deposit?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter19: Money Creation
Section: Chapter Questions
Problem 6SQP
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Suppose you remove $1000 from under your mattress and deposit it in first national bank. Using a balance sheet, show the impact of your deposit on the banks assets and liabilities. If the required reserve ratio is 10%,  what is the maximum amount the bank can loan from this deposit?

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