Imagine that kristy deposits $10,000 of currency into her checking account deposit at bank a and that the required reserve ratio is 20%. as a result of kristy’s deposit, a) bank a's reserves immediately increase by $) bank a's required reserves increase by $) bank a’s excess reserves increase by $) bank a can make a maximum new loan of $) checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of $

The answers ares stated below

Explanation:

(1) New deposit = $10,000.

(a) Bank A's reserves increase by $10,000

(b) Bank A's required reserves increase by $10,000 x 20% = $2,000

(c) Bank A's excess reserves increase by $(10,000 - 2,000) = $8,000

(d) Bank A can make a loan of maximum $ 8,000 (Only the excess reserve component).

(e) Deposits will increase a maximum of (Initial deposit / Required reserve ratio) = $10,000 / 0.2 = $50,000

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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