Advanced Placement (AP)

A. Calculate the dollar value of the bank reserves that the bank of Uchenna is required to hold b. Given the current reserves, calculate the maximum value of additional loans that the Bank of Uchenna can make C. Assume that Elike raises $5,000 in cash from a yard sale and deposits the cash in his checking account at the Bank of Uchenna. By how much does the money supply immediately change
as a result of Elike's deposit?
d. Calculate the maximum change in demand deposits in the banking system as a whole resulting from Elike's deposit.


A. Calculate the dollar value of the bank reserves that the bank of Uchenna is required to hold b.

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