Examine the balance sheet for a bank below: Assets Liabilities Reserves 600 000 Demand Deposits 5 230 000 Loans 2 000 000 Capital 1 250 000 Buildings 3 880 000 If the desired reserve ratio changes to...


Examine the balance sheet for a bank below:<br>Assets<br>Liabilities<br>Reserves<br>600 000<br>Demand Deposits<br>5 230 000<br>Loans<br>2 000 000<br>Capital<br>1 250 000<br>Buildings<br>3 880 000<br>If the desired reserve ratio changes to 5 percent and the bank were to loan out those excess reserves, what is<br>the potential expansion in demand deposits (increase in MS) in the banking system?<br>***You just need to put the number in your answer, no units or commas***<br>Answer:<br>

Extracted text: Examine the balance sheet for a bank below: Assets Liabilities Reserves 600 000 Demand Deposits 5 230 000 Loans 2 000 000 Capital 1 250 000 Buildings 3 880 000 If the desired reserve ratio changes to 5 percent and the bank were to loan out those excess reserves, what is the potential expansion in demand deposits (increase in MS) in the banking system? ***You just need to put the number in your answer, no units or commas*** Answer:

Jun 09, 2022
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