Determine the immediate impact on the balance sheet


Suppose you have just inherited $100,000 from your rich Uncle Sam. Being the conservative sort, you rush to your local bank and deposit entire windfall. The reserve requirement is currently 10 percent. Determine the immediate impact on the balance sheet of the bank? Mention each account affected and appropriate amount. Also, assuming your bank lends out money to extent allowed by law, discuss how much will the money supply grow beyond initial $100,000 deposit?

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Macroeconomics: Determine the immediate impact on the balance sheet
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