If bank reserves are equal to $2,000, the required reserve ratio is 10 percent, and banks make as many loans as they can, what will be the upper limit of the money supply assuming no borrower withdraws currency and leaves the loan balance in the bank after a loan is created

Question

kelis5801 kelis5801

14-04-2022
Business

contestada

If bank reserves are equal to $2,000, the required reserve ratio is 10 percent, and banks make as many loans as they can, what will be the upper limit of the money supply assuming no borrower withdraws currency and leaves the loan balance in the bank after a loan is created

Respuesta :

Otras preguntas

What is considered an illegal activity under the Sherman anti-trust act

چار چیزوں کے نام لکھیں جو رمضان میں کثرت سے پڑھنی چاہئے

tengo 2/3 de lo que cuesta una computadora ¿Cuanto vale la computadora si me faltan solo 318 dolares para comprarla?

Question 16 of 50 Jayden received a bonus check from his work for $6,000. He is going to deposit the money into a bank account that receives 5% compounded annua

Which statement best explains why the issue of slavery contributed to the outbreak of the Civil War? - The economies of the Confederate states relied on slave

Rebecca earned $115 in simple interest for 8 months at an annual interest rate of 3%. How much money did she start with in her account?

What problems did the National Convention face? How did this problem impact how revolutionary leaders began to treat suspected traitors within France?

Lydia has half of her investments in stock paying an 11% dividend and the other half in a stock paying 14% interest. If her total annual interest is $440, how m

Need immediately. The answers on picture may or may be wrong

Mercutio: Where the devil should this Romeo be?Came he not home to-night?Benvolio: Not to his father's; I spoke with his man.Mercutio: Why that same pale hard-h

ewomazinoade ewomazinoade · Answer 1 · 2022-04-25T12:25:15+02:00

The upper limit on the money supply assuming borrower withdraws currency and leaves the loan balance in the bank after a loan is created is $200,000.

What is the upper limit on the money supply?

The first step is to determine the total amount of deposits in the banks.

Deposits = resereves / reserve ratio

2000 / 0.1 = $20,000

Upper limit on money supply = deposits / reserve ratio

20,000 / 0.1 = $200,000

To learn more about reserve ratio, please check: https://brainly.com/question/6831267