Problems & Exercises for MACRO
Unit Four (for the Final Exam)
Unit Four--Assignment One--Web Problem 2
|
1 |
Suppose you suddenly realized that your bank only keeps about 10% of your deposits on reserve and lends out the rest. Would you rush to your bank to withdraw your money? Why or why not?
|
2 |
Suppose the bank's depositors became nervous and withdrew all of their money. What would happen to the bank? Explain.
Please send your responses by
e-mail