1. The required reserve ratio is 10% and a bank holds 5% excess reserves. what change in deposits results in a $20,000 increase in the money supply?
2. If RRR =8% and a $1,000 change in reserves yields a $9,090 increase in the money supply, what percentage of excess reserves do banks hold?
3. What increase in bank deposits is needed to increase the money supply by $10,000 when the actual reserve ratio is 12%?
4. A $3,000 deposit increases the money supply by $20,000. If banks are holding excess reserves if 5%, what is RRR?
5. Bank reserves increase by $5,000 when the RRR is 15%. If the bank holds an additional 1% as excess reserves, by how much does the money supply increase?
6. Bank reserves increase by $5,000 when the RRR is 15%. The banks initially hold an additional 1% as excess reserves but then lend out all excess reserves so that the actual reserves are equal to the required reserves. By how much does the money supply increase when the banks change from 1% to 0% excess reserves?