Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is equal to 3%. One bank in this economy now recieves an addition $300 of new deposits. What is the total quantity of new bank desposits that this will generate across the entire banking system (in dollars)? Note: round all answers to two decimal places. Do not include currency signs in your answer.

Suppose that you are in an economy with reserve requirements are equal to 11%, and cash drain is equal to 3%. One bank in this economy now recieves an addition $300 of new deposits. What is the total quantity of new bank desposits that this will generate across the entire banking system (in dollars)? Note: round all answers to two decimal places. Do not include currency signs in your answer.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 10P

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