Table 10-4
The following information pertains to the Bank of Moncton.
-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Moncton decides to hold reserves of 4 percent,by how much would the economy's money supply increase?
A) $30,000
B) $35,000
C) $42,000
D) $45,000

Question

Table 10-4
The following information pertains to the Bank of Moncton. 
-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Moncton decides to hold reserves of 4 percent,by how much would the economy's money supply increase?
A) $30,000 
B) $35,000 
C) $42,000 
D) $45,000

Quizplus · Accepted Answer

The Answer of Table 10-4
The following information pertains to the Bank of Moncton. 
-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Moncton decides to hold reserves of 4 percent,by how much would the economy's money supply increase?
A) $30,000 
B) $35,000 
C) $42,000 
D) $45,000

Table 10-4 The Following Information Pertains to the Bank of Moncton