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Business, 28.05.2021 14:00 andrew5182

You secure a new job as a tutor at the 10 Minute School. At the end of the month, you receive a salary of 15,000 taka in cash. You open a new savings account in Dutch Bangla Bank Limited
(DBBL) and deposit the 15,000 taka along with 10,000 taka, which you had saved up earlier.
a) If the DBBL maintains a CRR of 20%, how will it respond to the new deposit and what changes
will take place in DBBL’s balance sheet?
b) If every time the bank makes a loan, the loan results in a new savings account in a different bank
equal to the amount of the loan, by how much could the total money supply increase due to your
initial deposit?

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Answers: 3

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