Suppose that the banking system has no excess reserves.
· Find the maximum amount of check-writing deposits when bank reserves total $10,000 and the reserve requirement is (1) .10, (2) .09, and (3) .08.
· Find the change in the reserve requirement needed to increase the maximum amount of check-writing deposits from $100,000 to $102,564 when reserves total $10,000 and the initial reserve requirement is .10.