100 Points - AP Macro Questions - Brainliest to Correct Answers. Wrong Answers Get Reported Assume the reserve requirement is 20% and banks hold no excess reserves.

Assume that Mrs. Lafarge deposits $500 of cash from her pocket into a checking account at the First Bank of Swindletown. Calculate each of the following:

1. The maximum dollar amount the First Bank of Swindletown can initially lend.
2. The maximum amount of new demand deposits in the entire banking system.
3. The maximum change in the money supply.

answer; i believe the correct answer is norming;

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the density would be a smaller number.

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