bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the required reserve ratio is 10%, this bank: A. Is holding excess reserves of $1,000 B. Is in a position to make a new loan for $1,500 C. Is in a position to make a new loan for $2,500 D. Has less reserves than required
bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the required reserve ratio is 10%, this bank: A. Is holding excess reserves of $1,000 B. Is in a position to make a new loan for $1,500 C. Is in a position to make a new loan for $2,500 D. Has less reserves than required
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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A bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the
A. Is holding
B. Is in a position to make a new loan for $1,500
C. Is in a position to make a new loan for $2,500
D. Has less reserves than required
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