Macroeconomics I am really lost!!!?

Posted on 2014-04-16 11:45:00 in Economics by TREATMEBAD

i am sooooo lost!!!!! My pPrIk of a professor will not help unless i attend a seminar on the book he wrote..BS if you ask me!!

so here are my questions and I answered a couple( not sure if they are right) any help is super appreciated!!



!QUESTION:::



Suppose Peter Parker finds $500 in an old box of science textbooks. He decides to deposit the money in his checking account at Marvel Bank. Also assume that the required reserve ratio is 10%.



1. Have actual reserves increased or decreased for the bank? If so, by how much?

increased 500*10= 5000





2. Have required reserves increased or decreased for the bank? If so, by how much?







3. Have excess reserves increased or decreased for the bank? If so, by how much?







4. What is the value of the monetary multiplier?

1/1/10





5. What is the maximum amount of money that can be created or destroyed by the banking system?

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