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# Impact on the balance sheet of the bank

I'm at work attempting to find the answer to my problem. Could you please help me? To enhance my learning could you please show me the step-by-step calculation for this problem. Explain it in simple terms please.

You have just inherited \$ 100,000 from your rich aunt Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent.

What is the immediate impact on the balance sheet of the bank? Mention each account affected and the appropriate amount.

Also, assuming your bank lends out money to the extnet allowed by law, how much will the money supply grow beyond the initial \$100,000 deposit?

Thank-You!

#### Solution Preview

You have just inherited \$ 100,000 from your rich aunt Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent.
What is the immediate impact on the balance sheet of the bank? Mention each account affected and the appropriate amount.
The ...

#### Solution Summary

Response provides impact on the balance sheet of the bank

\$2.19