The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 21

Unless otherwise noted, the following assumptions are made in all questions: The required reserve ratio on checkable deposits is 10%, banks do not hold any excess reserves, and the public's holdings of currency do not change.
If reserves in the banking system increase by $1 billion because the Fed lends $ 1 billion to financial institutions, and checkable deposits increase by $9 billion, why isn't the banking system in equilibrium? What will continue to happen in the banking system until equilibrium is reached? Show the T-account for the banking system in equilibrium.