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19. Based on the balance sheets for three different banks, which of the following is true, if the reserve requirement is 10 percent? BANK A Assets Liabilities Actual reserves Loans $1,000 $4,000 Demand deposits $5,000 BANK B Assets Liabilities Actual reserves Loans $ 100 Demand deposits $ 600 $ 500 BANK C Assets Liabilities Actual reserves $ 10 Demand deposits $ 90 $ 100 Loans Bank B can increase its loans by $500. Bank B can increase its loans by $40. Bank A has no excess reserves. O Bank B has no exces

19. Based on the balance sheets for three different banks, which of the following is true, if the reserve requirement is 10 percent? BANK A Assets Liabilities Actual reserves Loans $1,000 $4,000 Demand deposits $5,000 BANK B Assets Liabilities Actual reserves Loans $ 100 Demand deposits $ 600 $ 500 BANK C Assets Liabilities Actual reserves $ 10 Demand deposits $ 90 $ 100 Loans Bank B can increase its loans by $500. Bank B can increase its loans by $40. Bank A has no excess reserves. O Bank B has no exces

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter19: Money Creation
Section: Chapter Questions
Problem 6SQP
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Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Capital stock200,000 Securities33,000 Property200,000
Transcribed Image Text:Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Capital stock200,000 Securities33,000 Property200,000
19. Based on the balance sheets for three different banks, which of the following is true, if the reserve requirement is 10 percent? * BANK A Assets Liabilities Actual reserves Loans $1,000 Demand deposits $5,000 $4,000 BANK B Assets Liabilities Actual reserves Loans $ 100 $500 Demand deposits $ 600 BANK C Assets Liabilities Actual reserves $ 10 Demand deposits $ 100 Loans $ 90 Bank B can increase its loans by $500. Bank B can increase its loans by $40. Bank A has no excess reserves. Bank B has no excess reserves. EN
Transcribed Image Text:19. Based on the balance sheets for three different banks, which of the following is true, if the reserve requirement is 10 percent? * BANK A Assets Liabilities Actual reserves Loans $1,000 Demand deposits $5,000 $4,000 BANK B Assets Liabilities Actual reserves Loans $ 100 $500 Demand deposits $ 600 BANK C Assets Liabilities Actual reserves $ 10 Demand deposits $ 100 Loans $ 90 Bank B can increase its loans by $500. Bank B can increase its loans by $40. Bank A has no excess reserves. Bank B has no excess reserves. EN
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