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If you withdraw $5,000 from your checking account and the required reserve ratio is 19 percent, then the banks Instructions:
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Answer #1

a) Answer to blank 1: Fall

    Answer to blank 2: $5,000

b) Answer to blank 1: Fall

    Answer to blank 2: $950      [i.e., 0.19 * 5,000]

c) Answer to blank 1: Fall

    Answer to blank 2: $4,050         [i.e., 5,000 - 950]

d) Answer to blank 1: rise

    Answer to blank 2: $500

e) Answer to blank 1: rise

    Answer to blank 2: $95      [i.e., 0.19 * 500]

f) Answer to blank 1: rise

    Answer to blank 2: $405       [i.e., 500 - 95]

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