How much reserves must the bank hold?

A bank has assets of $500 of reserves and $3000 of loans with a 10 percent required Show more Macro Question A bank has assets of $500 of reserves and $3000 of loans with a 10 percent required reserve ratio. What is the money multiplier for this bank? The money multiplier for this bank is 10. How much reserves must the bank hold? The bank must hold $150 in reserves. Please Answer: If the bank lent out all funds permissible and those funds were deposited back in the bank what would the total increase in bank assets be in the long run? Explain. Show less

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