Answer:
$1,500
Explanation:
The required reserve ratio is the proportion of the liabilities that a bank is required to keep at all times instead of loaning out or investing. A $150 dollars deposit results in a $150 increase in reserves. That being said, with a 10% reserve ratio, the increase in money supply as result of this deposit is:
[tex]I=\frac{\$150}{0.10} \\I=\$1,500[/tex]
Money supply increases by $1,500
