Calculate the potential change in demand deposits

Reference no: EM131443692

Question: If the required reserve ratio is 10 percent, calculate the potential change in demand deposits under the following circumstances:

a. You take $5,000 from under your mattress and deposit it in your bank.

b. You withdraw $50 from the bank and leave it in your wallet for emergencies.

c. You write a check for $2,500 drawn on your bank (Wells Fargo) to an auto mechanic who deposits the funds in his bank (Bank of America).

Reference no: EM131443692

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