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# Money, Multiplier

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Assume that the banking system has no excess reserves.

Â· Find the maximum amount of check-writing deposits when bank reserves total \$10,000 and the reserve requirement is (1) .10, (2) .09, and (3) .08.

Â· Find the change in the reserve requirement needed to increase the maximum amount of check-writing deposits from \$100,000 to \$102,564 when reserves total \$10,000 and the initial reserve requirement is .10.

https://brainmass.com/economics/banking/money-multiplier-18678

#### Solution Preview

1. The bank's reserves are 10,000
the reserve requirement is 0.10
Then the maximum amount of deposit is 10000/0.1=100000
So the maximal loanable amount is ...

#### Solution Summary

The expert finds the change in the reserve requirement needed to increase the maximum amount of check-writing deposits.

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