Assume the banking system contains the following, Ask an Expert

Economics

Assume the Banking system contains the following amounts:

Total reserves- $80 billion

Transactions deposits- $800

Cash held by public- $100 billion

Reserve requirement- 0.10

What would the lading capacity of the banking system be after such a portfolio switch?

How large would the money supply be if the banks fully utilized their lending capacity?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91370497

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