Assume the Continental National Bank's balance statement is as follows:Assets:reserves $40,000loans $25,000securities $110,000Liabilities + net worthcheckable deposits $130,000stock shares $45,000Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it?$3,000.$24,000.$6,000.$16,000.
Assume the Continental National Bank's balance statement is as follows:Assets:reserves $40,000loans $25,000securities $110,000Liabilities + net worthcheckable deposits $130,000stock shares $45,000Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it?$3,000.$24,000.$6,000.$16,000.
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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Question
Assume the Continental National Bank's balance statement is as follows:
Assets:
reserves $40,000
loans $25,000
securities $110,000
Liabilities + net worth
checkable deposits $130,000
stock shares $45,000
Assuming a legal reserve ratio of 20 percent, how much in
$3,000.
$24,000.
$6,000.
$16,000.
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