Business, 12.03.2021 15:20 savannahsims5847

An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below. Assets Liabilities
Reserves $750 Deposits $10,000
Loans 9,250
If all banks in the economy have the same reserve ratio as this bank, then an increase in reserves of $150 for this bank has the potential to increase deposits for all banks by:
a. $866.67.
b. $1,666.67.
c. $2,000.00.
d. an infinite amount.

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An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, an...

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