suppose the required reserve ratio is 11%. How much additional money can BBB lend out at a maximum? suppose the required reserve ratio is lowered to 8%. What is the Maximum amount of additional money that BBB can lend out? Is this different than the maximum amount of new money BBB can create by itself?             3. suppose the required reserve ratio is raised to 15%.  What is the maximum amount of additional money BBB can lend out?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section: Chapter Questions
Problem 23AA
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  1. suppose the required reserve ratio is 11%. How much additional money can BBB lend out at a maximum?
  2. suppose the required reserve ratio is lowered to 8%. What is the Maximum amount of additional money that BBB can lend out? Is this different than the maximum amount of new money BBB can create by itself?            

3. suppose the required reserve ratio is raised to 15%.  What is the maximum amount of additional money BBB can lend out?

Big bucks bank ii (in billions)
Assets
Reserves $120
$300
$150
Bonds
Loans
Liabilities
Demand Deposits $500
Equity
$70
Transcribed Image Text:Big bucks bank ii (in billions) Assets Reserves $120 $300 $150 Bonds Loans Liabilities Demand Deposits $500 Equity $70
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