Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

Within a banking system, every bank keeps 10% of deposits as cash. Customers take out $20 000 in cash. If there is no later net change in notes and coins in circulation, by what amount will the banks need to cut their net loans?

  • A$2000
  • B$18 000
  • C$180 000
  • D$220 000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI