Answer the question on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.Assets:reserves $20loans $25securities $15property $90Liabilities + net worth:checkable deposits $100stock shares $50Refer to the data. If this bank has excess reserves of $6 million, the legal reserve ratio must be:10 percent.12 percent.14 percent.20 percent.
Answer the question on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.Assets:reserves $20loans $25securities $15property $90Liabilities + net worth:checkable deposits $100stock shares $50Refer to the data. If this bank has excess reserves of $6 million, the legal reserve ratio must be:10 percent.12 percent.14 percent.20 percent.
Chapter25: Money Creation
Section: Chapter Questions
Problem 9SQP
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Answer the question on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.
Assets:
reserves $20
loans $25
securities $15
property $90
Liabilities + net worth:
checkable deposits $100
stock shares $50
Refer to the data. If this bank has
10 percent.
12 percent.
14 percent.
20 percent.
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