Consider a bank with the following balance sheet Assets Liabilities Reserves $100 million þeposits $600 million Loans $700 million Bank capital $200 million If the bank suffers a deposit outflow of $99 million and the bank has a required reserve ratio on deposits of 10%, how much is the banks shortfall in reserves?
Consider a bank with the following balance sheet Assets Liabilities Reserves $100 million þeposits $600 million Loans $700 million Bank capital $200 million If the bank suffers a deposit outflow of $99 million and the bank has a required reserve ratio on deposits of 10%, how much is the banks shortfall in reserves?
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 16P
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