Posted: March 7th, 2017

Assume that the Fed grew concerned about banks making risky loans and changed the reserves requirements to .2, or 20%. What would the total change in deposits in all banks be now if the same $100 increase in reserve starts the process?

Assume that the Fed grew concerned about banks making risky loans and changed the reserves requirements to .2, or 20%. What would the total change in deposits in all banks be now if the same $100 increase in reserve starts the process?

$2000
$200
$500
$5000