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PSU Econ 104 Final Exam – Brown University Questions with Correct Answers 100% Verified

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PSU Econ 104 Final Exam – Brown University Questions with Correct Answers 100% Verified If the required reserve ration is 20%, the simple deposit multiplier is _______ A. 2 B. 5 C. 10 D. 20 B. 5 1/.2 = 5 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit, Bank A's reserves immediately increase by: A. $2,000 B. $8,000 C. $ 10,000 D. $50,000 C. $10,000 This is how much money she puts in the bank. Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit, Bank A's required reserves increase by: A. $2,000 B. $8,000 C. $10,000

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