The reserve requirement is10%. Suppose that Ginie transfers $10,000 from an account at First Bank to a checking account at…
Hello, Please explain.
The reserve requirement is ;10%. Suppose that Ginie transfers $10,000 from an account at First Bank to a checking account at Second Bank.
Second ;Bank’s total reserves will increase by $______ ;Of ;that, Second Bank is required to hold ______
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in ;reserves, and thus can loan out a maximum of $___________
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