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Mathematics 16 Online
OpenStudy (anonymous):

Will somebody help me?????????????????????????????????????????????//

OpenStudy (anonymous):

what is ur question?

OpenStudy (anonymous):

With a deposit of $500, assuing that the bank places entire amount into LR, both demand deposits and LR increase by $500. Thus RR=$150($1,500 X0.1) and LR=$600. Excess reserves (ER) now equal $450($600-$150), which is the amount the bank can lend.

OpenStudy (anonymous):

what is your question - this is not asking anything

OpenStudy (anonymous):

At the start required reserved (RR)=legal reserves (LR)=$100($1,000 X0.1) With a deposit of $500, assuing that the bank places entire amount into LR, both demand deposits and LR increase by $500. Thus RR=$150($1,500 X0.1) and LR=$600. Excess reserves (ER) now equal $450($600-$150), which is the amount the bank can lend.

OpenStudy (anonymous):

the bank can only lend from the excess reserves - calculations are correct.

OpenStudy (anonymous):

so the answer is what?

OpenStudy (precal):

did you try to post this in the finance study group?

OpenStudy (anonymous):

no but i'm going to try.. Where do I go to post it in the finance study group

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