Question

In december 1994 a man in ohio decided to deposit all of the 8 million pennies he had been saving for nearly 65 years. (his deposit weighed over 48,000 pounds!) with a reserve requirement of 5 percent, how did his deposit change the lending capacity of (a) his bank? $ 76,000 (b) the banking system? $

Answer 1

8,000,000 pennies equals $80,000. 1/.05=20
20 x $80,000=$1,600,000 more that the bank was able to lend
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