1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10...

Question

Question

1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10...

1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is

Answer: $1,800

2) If the reserve requirement ratio (RR) is 0.20, the simple deposit multiplier is

Answer: 5

3) Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent. If the Federal Reserve reduces the required reserve ratio to 15 percent, then the bank will now have excess reserves of

Answer: $5 million

4) You earn $500 a month, currently have $200 in currency, $100 in your checking account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. Using the M1 measure of money, you have

Answer:
money = $300, annual income = $6,000, and wealth = $4,300.

Please help me understand the work for the answers to these questions thank you!:)

business economics

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