Mafer A.

asked • 11/20/20

A bank currently has $70,000 in transaction deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The required reserve ratio is 20 percent.

What is the maximum amount the money supply can increase, assuming this bank is the only bank in the system that has excess reserves?

What are the actual reserves, required reserves, excess reserves, and the money multiplier?


I want to check my Math

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