A bank with no excess reserves has a target reserve ratio of 0.1. It has $800 in reserves and $850 in government bonds. Its only other asset is loans to customers, and its only liability is customer deposits. What is the dollar value of loans to customers? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)
A bank with no excess reserves has a target reserve ratio of 0.1. It has $800 in reserves and $850 in government bonds. Its only other asset is loans to customers, and its only liability is customer deposits. What is the dollar value of loans to customers? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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Transcribed Image Text:Question 15
A bank with no excess reserves has a target reserve ratio of 0.1. It has $800 in reserves and $850 in government bonds. Its only
other asset is loans to customers, and its only liability is customer deposits. What is the dollar value of loans to customers?
(Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is
$6.115, enter 6.12. If appropriate, remember to enter the - sign.)
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