4-- Suppose a bank's balance sheet looks like this. The bank is required to hold reserves equal to 10% of deposits. Assets Reserves Loans Total Assets $ $ 800 $ +A Liabilities 5200 $ 6000 $ Deposits 6000 Total Liabilities a. How much excess reserves does the bank hold? 6000 b. How much more can this bank lend?
4-- Suppose a bank's balance sheet looks like this. The bank is required to hold reserves equal to 10% of deposits. Assets Reserves Loans Total Assets $ $ 800 $ +A Liabilities 5200 $ 6000 $ Deposits 6000 Total Liabilities a. How much excess reserves does the bank hold? 6000 b. How much more can this bank lend?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 4.9P
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