10 Based on the Required Reserves the Reserve Ratio must be ASSETS LIABILITIES Required Reserves $190 Checking Deposits $1,900 Excess Reserves $ 810

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 31CTQ: If a government gains from unexpected inflation when it borrows, why would it choose to offer...
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10
Based on the Required Reserves the Reserve Ratio must be
ASSETS
LIABILITIES
Required Reserves
$190
Checking Deposits $1,900
Excess Reserves
$ 810
Loans
$ 900
Total Assets
$1,900
Total Liabilities
$1,900
5%
10%
20%
19%
O None of the above
Transcribed Image Text:10 Based on the Required Reserves the Reserve Ratio must be ASSETS LIABILITIES Required Reserves $190 Checking Deposits $1,900 Excess Reserves $ 810 Loans $ 900 Total Assets $1,900 Total Liabilities $1,900 5% 10% 20% 19% O None of the above
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