ASSETS Reserves Loans Gov. Bonds Stocks $750 $1,000 $1,250 LIABILITIES $10,000

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 13P
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Use the following values in this T-account to answer the questios
below: (use 2 decimal places for any answer that have decimals)
ASSETS
Reserves
Loans
Gov. Bonds $1,000
Stocks $1,250
$750
LIABILITIES
$10,000
www
1. Assume that the bank only keeps Required Reserves. What is the
reserve requirement in this economy? Blank 1%
2. Based on the information provided, how much money would be
available for investments by this bank? Blank 2
3. Based on the information provided, how much money does this bank
hold in form of loans? Blank 3
Transcribed Image Text:Use the following values in this T-account to answer the questios below: (use 2 decimal places for any answer that have decimals) ASSETS Reserves Loans Gov. Bonds $1,000 Stocks $1,250 $750 LIABILITIES $10,000 www 1. Assume that the bank only keeps Required Reserves. What is the reserve requirement in this economy? Blank 1% 2. Based on the information provided, how much money would be available for investments by this bank? Blank 2 3. Based on the information provided, how much money does this bank hold in form of loans? Blank 3
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