Question

After saving money in her piggy bank for three years, Beverly decided to deposit $5,000 of the money in the Millertown Bank. If the bank were fully loaned out and the reserve requirement was 20%, then the change in the dollar value of the total money supply would be...

Answer 1

I believe its 4,000 because the bank lends the cash in hand 20% is 1,000 to anyone who needs a lone so it produces the amount you actually have in tour account