Answer
a) 2000 dollars
b) 2000 dollars
c) 2000 dollars
d) 20000 dollars
e) 3,636.36 dollars
Work Step by Step
$2000/.1= 20000$
10% reserve ratio
Let c = currency and d = demand deposits
$c = d$
$1/.1 = 10$
$10 * (2000-c) = d$
$10 * (2000-c) = c$
$20000 - 10c = c$
$20000 = 11c$
$20000/11 = 11c/11$
$1818.18 = c$
$c = d$
$1818.18 = d$
$1818.18 + 1818.18 = 3636.36$
