Brown PSU Econ 104 Final Exam Actual Questions and Answers 2024 Graded A+

Brown PSU Econ 104 Final Exam Actual Questions and Answers 2024 Graded A+ 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 D. $50,000 - ️️ A. $2,000 If the bank must keep 20%, then $10,000 *.2 = $2,000 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 excess reserves increase by: A. $2,000 B. $8,000 C. $10,000 D. $50,000 - ️️ B. $8,000 Their excess reserves will increase by however much she put in minus how much they are required to keep. $10,000-$2,000 = $8,000 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 excess reserves increase by: A. $2,000 B. $8,000 C. $10,000 D. $50,000 - ️️ B. $8,000