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 ______
in reserves, and thus can loan out a maximum of $___________
Thank you!
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