Business, 06.06.2020 18:02 pgfrkypory2107

Suppose that in a country the total holdings of banks were as follows:Required reserves $45 millionExcess reserves $15 millionDeposits $750 millionLoans $600 millionTreasury bonds $90 millionAssuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 2%, banks still want to hold the same percentage of excess reserves, and banks do not change their holdings of Treasury bonds?

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Suppose that in a country the total holdings of banks were as follows:Required reserves $45 millionE...