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Q3-there are number of banks as: A,B,C,D,etc (5 pts) CRR=20% Primary Deposit=4000 SAR 1- Calculate the...

Q3-there are number of banks as: A,B,C,D,etc (5 pts)

CRR=20%

Primary Deposit=4000 SAR

1- Calculate the Credit Multiplier: k

2- Determine the Balance Sheet of each Bank

3- Deduce the combined Balance Sheet of banking system

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Answer #1

Credit multiplier Too 2012 Balance sheet of (on the initial Asset (2) Cash Reserves 4000 I Total each Bank Cash deposit. liab

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