Assets Liabilities Reserves $3000 Deposits $22,000 Loans $20,000 Debt $2000 Securities $5,000 Balance sheet for Fictional First bank Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is the maximum amount that Fictional First can loan out and still meet the reserve requirement?
Assets Liabilities Reserves $3000 Deposits $22,000 Loans $20,000 Debt $2000 Securities $5,000 Balance sheet for Fictional First bank Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is the maximum amount that Fictional First can loan out and still meet the reserve requirement?
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 13P
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the answer is 800 ,how plz explain thanks
Transcribed Image Text:Assets
Liabilities
Reserves
$3000 Deposits
$2,000
$2000
Loans
$20,000 Debt
Securities
$5,000
Balance sheet for Fictional First bank
Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is
the maximum amount that Fictional First can loan out and still meet the reserve
requirement?
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