kskinner83
New member
This is economics homework that I am completely confused on. Can anyone help me out?
How can a new deposit of $10,000 at one bank create other new deposits at other banks? Suppose the required reserve ratio is 10 percent and people keep no currency outside of the banks. What will be the new amount of deposits in the second and third rounds?
Great help! I had no understanding of how this was all working but now I have a grip on it.
How can a new deposit of $10,000 at one bank create other new deposits at other banks? Suppose the required reserve ratio is 10 percent and people keep no currency outside of the banks. What will be the new amount of deposits in the second and third rounds?
Great help! I had no understanding of how this was all working but now I have a grip on it.