Answer:
Total increase in deposit = $54,200,000
Explanation:
given data
deposits = $20 million dollars
bank reserve = 10%
solution
we know that Deposit in bank A is = $20,000,000
and Reserve @ 10% = $2,000,000
so
Bank A loans or bank B deposit will be = $20,000,000 - $2,000,000
Bank A loans or bank B deposit = $18,000,000
here Reserve @ 10% = $1,800,000
so
Bank B loans or Bank C deposit will be here = $18,000,000 - $1,800,000
Bank B loans or Bank C deposit = $16,200,000
so that
Total increase in deposit will be = Bank A + Bank B + Bank C ...............1
put here value we get
Total increase in deposit = $20,000,000 + $18,000,000 + $16,200,000
Total increase in deposit = $54,200,000
