Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____.
A) $2,000; $4,000
B) $2,000; $40,000
C) $10,000; $40,000
D) $10,000; $50,000
Correct Answer:
Verified
Q192: An increase in the excess reserves banks
Q193: An increase in the excess reserves banks
Q194: Suppose you found $2,000 hidden in your
Q195: The money supply would tend to rise
Q196: Which of the following combinations would have
Q198: Suppose you found $5,000 hidden in your
Q199: Suppose you found $10,000 hidden under a
Q200: If banks faced a 100 percent reserve
Q201: Which of the following is true?
A)Demand deposits
Q202: Which of the following is true?
A)The FDIC
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents