Assets ($) Liabilities($)
Reserves 100 Deposits 400
Loans 300
The Legal reserve ratio is 20%. Suppose all banks loan out their excess reserves n all loans are re-deposited into the banking system. After the credit creation process is completed, the amount of reserves held by banks is ____ n the amount of loans'll increase by _____.
The answer of both blanks is 100 but i dunno y
Econ Money and Banking
2007-12-31 5:46 am
回答 (1)
2008-01-01 10:44 pm
✔ 最佳答案
400X1/20%=RR=$80
ER=TR-RR
=100-80
=$20
Max.increase in bank loans :
20x1/20%
=100
As $20(ER)is re-deposited into the banking system
1st :
Deposits = $20
RR=20x20%
=4
ER=16
.
.
.
The process keep going on until it is completed.
Then you can find the answer is also $100
OR
My Econ Teacher said that if there's no new cash deposite or cash leakage or banks keep ER , the amount of reserves held by banks is as same as the intitial reserves that is $100
參考: MYSELF
收錄日期: 2021-04-13 14:50:46
原文連結 [永久失效]:
https://hk.answers.yahoo.com/question/index?qid=20071230000051KK03892