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Business, 08.03.2021 19:20 abbbaayyyy1709

Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? Which events could cause the increase in the money supply to be less than its potential? A. Banks decide to keep some excess reserves on hand.
B. Banks choose to loan out all excess reserves.
C. All money loaned out is deposited back into the banking system.
D. Some loan recipients choose to hold some cash instead of depositing all of it in banks.

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Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $3,500 winnings...
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