Suppose that we exist in a banking system with a mandated reserve ratio of 12%. Suppose that
the banks in this system have no capital themselves ($0) but do still have deposits. Suppose to
begin that there is no cash drain (0%) to begin with. 11. Suppose that there is a new deposit into a
bank of 100 dollars. How much will this deposit change the total quantity of deposits in this
banking system? [1 point] 12. If the total banking system has $8,000 in deposits across the whole
system, then what must have been the initial deposit into this banking system to generate these $8
,000 in total deposits? [2 points] Using the initial quantity of deposits that you calculated in the
previous question (Q12), answer the following final two questions: 13. If the Central Bank lowers
the reserve ratio from 12% to 10%, how much would this change the quantity of deposits across
the total banking system? [2 points] 14. Suppose that the reserve ratio remains at 10%. If there
was also a cash drain of 10%, what would be the quantity of deposits across the total banking
system? [2 points].
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Suppose that we exist in a banking system with a mandated re.pdf
1. Suppose that we exist in a banking system with a mandated reserve ratio of 12%. Suppose that
the banks in this system have no capital themselves ($0) but do still have deposits. Suppose to
begin that there is no cash drain (0%) to begin with. 11. Suppose that there is a new deposit into a
bank of 100 dollars. How much will this deposit change the total quantity of deposits in this
banking system? [1 point] 12. If the total banking system has $8,000 in deposits across the whole
system, then what must have been the initial deposit into this banking system to generate these $8
,000 in total deposits? [2 points] Using the initial quantity of deposits that you calculated in the
previous question (Q12), answer the following final two questions: 13. If the Central Bank lowers
the reserve ratio from 12% to 10%, how much would this change the quantity of deposits across
the total banking system? [2 points] 14. Suppose that the reserve ratio remains at 10%. If there
was also a cash drain of 10%, what would be the quantity of deposits across the total banking
system? [2 points]
![Suppose that we exist in a banking system with a mandated reserve ratio of 12%. Suppose that
the banks in this system have no capital themselves ($0) but do still have deposits. Suppose to
begin that there is no cash drain (0%) to begin with. 11. Suppose that there is a new deposit into a
bank of 100 dollars. How much will this deposit change the total quantity of deposits in this
banking system? [1 point] 12. If the total banking system has $8,000 in deposits across the whole
system, then what must have been the initial deposit into this banking system to generate these $8
,000 in total deposits? [2 points] Using the initial quantity of deposits that you calculated in the
previous question (Q12), answer the following final two questions: 13. If the Central Bank lowers
the reserve ratio from 12% to 10%, how much would this change the quantity of deposits across
the total banking system? [2 points] 14. Suppose that the reserve ratio remains at 10%. If there
was also a cash drain of 10%, what would be the quantity of deposits across the total banking
system? [2 points]](https://image.slidesharecdn.com/supposethatweexistinabankingsystemwithamandatedre-230321040402-9764a87f/85/Suppose-that-we-exist-in-a-banking-system-with-a-mandated-re-pdf-1-320.jpg)
