Monday, March 30, 2015

3/5)  The three types of multiple deposit expansion question 


Type 1: calculate the initial chance is excess reserves
-aka the amount a single bank can loan from the initial deposit.
Type 2: calculate the change in loans in the banking system 
Type 3: calculate the change in the money supply. 
   • sometimes type 2 and type 3 will have the same result (ie. No fed involvement)
Type 4: calculate the change in demand deposits.  

No comments:

Post a Comment