Suppose that all banks maintain a 100 percent reserve ratio.If an individual deposits $ 3,000 of currency in a bank,

Name: Suppose that all banks maintain a 100 percent reserve ratio.If an individual deposits $ 3,000 of currency in a bank,
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If all banks maintain a 100 percent reserve ratio, it means that they keep all deposits in their vaults or on deposit with the central bank. This means that none of the deposited currency is being used to make loans, and therefore the money supply is unaffected.

Suppose That All Banks Maintain a 100 Percent Reserve Ratio