Does a cash leakage affect the change in checkable deposits and the money supply expansion process? Explain your answer. Suppose $10,000 in new dollar bills (never seen before) falls magically from...

Does a cash leakage affect the change in checkable

deposits and the money supply expansion process?

Explain your answer.

Suppose $10,000 in new dollar bills (never seen before)

falls magically from the sky into the hands of Joanna

Ferris. What are the minimum increase and the maximum increase in the money supply that may result?

Assume the required reserve ratio is 10 percent.