A customer of Citibank writes a $20,000 check for a new car, which the car dealer...
A customer of Citibank writes a $20,000 check for a new car, which the car dealer deposits in its bank, Capital One. How do the two Bank’s reserves change and by how much?
Homework Answers
Reserves of Citibank falls by $ 20,000 & reserves of Capital one rises by $20,000.
Thus total reserves in Economy remains unchanged.
Add Answer to:
A customer of Citibank writes a $20,000 check for a new car,
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(b) a reduction of $1000 in the price
of the car, the same down payment of $5,000, and bank financing of
the balance after down payment, over 5 years with end-of-month
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(a) paying the balance with
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of the car, the same down payment of $5,000, and bank financing of
the balance after down payment, over 5 years with end-of-month
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12_9 12
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