Assume that the required reserve ratio is 7.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Bank Uno has $2,167 in reserves and $2,167 in deposits. Once the lending and depositing process is complete, what will Bank Uno have in reserves, loans, and deposits?

Assume that the required reserve ratio is 7.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Bank Uno has $2,167 in reserves and $2,167 in deposits. Once the lending and depositing process is complete, what will Bank Uno have in reserves, loans, and deposits?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter15: Money Creation

Section: Chapter Questions

Problem 19SQ

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