The bank of turlock has 30000 in reserves 100000 in demand, Econometrics

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The bank of turlock has 30000 in reserves 100000 in demand

The Bank of Turlock has $30,000 in reserves, $100,000 in demand deposits and the reserve requirement is 15%. How much can this bank lend out? How much does the money supply increase when it makes that loan?

The equations given to me were:
RR = rr x DD
ER = AR - RR
mm = 1/rr
DMS = mm x change in ER

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Econometrics: The bank of turlock has 30000 in reserves 100000 in demand

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Econometrics: The bank of turlock has 30000 in reserves 100000 in demand

Reference No:- TGS0580275

Have a Question? (oR Write a Review)

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Econometrics: The bank of turlock has 30000 in reserves 100000 in demand

Reference No:- TGS0580275

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