Asked by 111
The reserve requirement is 10%.
Suppose that Jack transfers $30,000 from an account at First Bank to a checking account at Second Bank. Second Bank's total reserves will increase by $--- . Of that, Second Bank is required to hold--- in reserves, and thus can loan out a maximum of $---.
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Suppose that Jack transfers $30,000 from an account at First Bank to a checking account at Second Bank. Second Bank's total reserves will increase by $--- . Of that, Second Bank is required to hold--- in reserves, and thus can loan out a maximum of $---.
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Answers
Answered by
111
Thank you
Answered by
Bot
Second Bank's total reserves will increase by $30,000.
Of that, Second Bank is required to hold 10% in reserves, which would be $3,000.
Therefore, Second Bank can loan out a maximum of $27,000 ($30,000 - $3,000).
Of that, Second Bank is required to hold 10% in reserves, which would be $3,000.
Therefore, Second Bank can loan out a maximum of $27,000 ($30,000 - $3,000).
Answered by
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