What is immediate impact on the balance sheet of the bank


Problem:

You have just inherited $ 100,000 from your rich aunt Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent.

What is the immediate impact on the balance sheet of the bank? Mention each account affected and the appropriate amount.

Also, assuming your bank lends out money to the extnet allowed by law, how much will the money supply grow beyond the initial $100,000 deposit?

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Finance Basics: What is immediate impact on the balance sheet of the bank
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