While bob was walking in the park he found a 100 bill not, Ask an Expert

Economics

While Bob was walking in the park, he found a $ 100 bill. Not finding the owner, he decided to deposit it in his checking account. The banks have no excess reserves and required reserve ratio is 25 %

a. How did it change M1 initially?

b.How much money can his bank lend out initially?

c.How much total money supply will change eventually in the whole banking system?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9746787

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