Respuesta :
16.7 is the money multiplier if there is a reserve requirement and the bank of pleasantville is exactly in compliance with that requirement. Suppose all other banks are the same.. Finally, consider that people only have deposits and no actual money.
What will be the reserve needed in 2023?
The reserve requirement exemption amount for 2023 was enhanced by the Regulation D changes from $32.4 million to $36.1 million, while the amount of the low reserve tranche was increased from $640.6 million to $691.7 million.
What are an example of needed reserves?
The necessary reserve ratio may be calculated by simply dividing the amount of money a bank must hold in reserve by the amount of money it has on deposit. The minimal reserve ratio, for instance, would be 1/20, or 5%, if a bank required to retain $500,000 in reserves in addition to its $10 million in deposits.
To know more about Reserve requirement visit:
https://brainly.com/question/15966594
#SPJ4
I understand that the question you are looking for is:
Assume there is a reserve requirement and the Bank of Pleasantville is exactly in compliance with that requirement. Assume the same is true for all other banks. Lastly, assume people hold only deposits and no currency. What is the money multiplier?
Reserves: 3000
Loans 47,000
Deposits 50000
