Use the following to answer questions:
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%.Banks hold no excess reserves.A customer deposits $6000 in her chequable deposit.
-(Scenario: Holding Cash) Refer to Scenario: Holding Cash.Assume that after receiving the deposit,the bank lends out its excess reserves.When the loan is spent,_____ of the loan will be a chequable deposit and _____ will be held by the public as cash.
A) $6000;$0
B) $4800;$1200
C) $2400;$2400
D) $3000;$3000
Correct Answer:
Verified
Q152: Use the following to answer questions:
Charlotte withdraws
Q153: Use the following to answer questions:
Charlotte withdraws
Q154: Use the following to answer questions:
The reserve
Q155: Use the following to answer questions:
The reserve
Q156: Use the following to answer questions:
Charlotte withdraws
Q158: Use the following to answer questions:
Charlotte withdraws
Q159: Use the following to answer questions:
The reserve
Q160: Use the following to answer questions:
The reserve
Q161: Use the following to answer questions:
Suppose that
Q162: Use the following to answer questions:
Suppose that
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