Business, 26.09.2021 07:00, emmaja121003

Assume Bank A received an initial deposit of $6000, Bank B received an initial deposit of $10,000, and Bank C received an initial deposit of $2000. Each kept a percentage of the money deposited in reserve based on the reserve rate and loaned out the rest, and the amount each loaned out was eventually all deposited back into the bank. This cycle continued indefinitely for all three banks. A list of initial deposits, money multipliers, reserve rates, and total amounts deposited is shown below. (6 points: Part I - 2 points; Part II - 2 points; Part III - 2 points)
Initial Deposits: $6000; $10,000; $2000
Money Multipliers: 50, 25, 20
Reserve Rates: 5%; 2%; 4%
Total Amount Deposited: $100,000; $200,000; $150,000
Part I: Choose the initial deposit, money multiplier, reserve rate, and total amount deposited that would make sense for Bank A. Justify your answer.

Part II: Choose the initial deposit, money multiplier, reserve rate, and total amount deposited that would make sense for Bank B. Justify your answer.

Part III: Choose the initial deposit, money multiplier, reserve rate, and total amount deposited that would make sense for Bank C. Justify your answer.

Answers: 2

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Assume Bank A received an initial deposit of $6000, Bank B received an initial deposit of $10,000, a...