3. Refer to the T account of First National Bank First National Bank T Account Assets Liabilities Reserves $2,500 Deposits 10,000 Loans $7,500 Based on the table: • Calculate the reserve ratio for this bank • Calculate the money multiplier for this bank • Assuming that this bank has a $500 excess reserve then how much money can be created with that amount?
3. Refer to the T account of First National Bank First National Bank T Account Assets Liabilities Reserves $2,500 Deposits 10,000 Loans $7,500 Based on the table: • Calculate the reserve ratio for this bank • Calculate the money multiplier for this bank • Assuming that this bank has a $500 excess reserve then how much money can be created with that amount?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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