5 Assume that 1 000 is deposited in the bank and that each

Last updated: 2/17/2023

5 Assume that 1 000 is deposited in the bank and that each bank loans out all of its excess reserves For each of the following required reserve ratios calculate the amount that the bank must hold in required reserves the amount that will be excess reserves the deposit expansion multiplier and the maximum amount that the money supply could increase Required Reserve Ratio 10 Required reserves Excess reserves Deposit expansion multiplier Maximum increase in the money supply 1 5 12 5 15 25