Ask Question
23 July, 14:33

Suppose you deposit $800800 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 0.44 0? The change in checking deposits is equal to: $nothing (enter your result rounded to the nearest dollar ).

+5
Answers (1)
  1. 23 July, 15:01
    0
    Change in checking deposit is $18,20,000

    Explanation:

    Checking account is the kind or form of deposit account that is held at a institution and it allows the deposits as well as withdrawals.

    The change in the checking deposit is computed as:

    Change in Checking deposit = Deposit amount / Required reserve ratio

    where

    Demand deposit is $800,800

    Required reserve ratio is 0.440

    Putting the values above:

    Change in checking deposit = $800,800 / 0.440

    Change in checking deposit = $18,20,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose you deposit $800800 cash into your checking account. By how much will checking deposits in the banking system increase as a result ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers