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Homework answers / question archive / If the reserve requirement for demand deposits is 10 percent,   what is the maximum change in the money supply that the banking system can create if ?   a

If the reserve requirement for demand deposits is 10 percent,   what is the maximum change in the money supply that the banking system can create if ?   a

Finance

If the reserve requirement for demand deposits is 10 percent,  

what is the maximum change in the money supply that the banking system can create if ?

 

a. the Federal Reserve puts $1,000,000 of new reserves in the banking system 

 

b. $1,000,000 in cash is deposited in checking accounts 

 

 

c. IBM borrows $1,000,000 from an insurance company 

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