Last Bank of Panorama Springs Assets: Liabilities: Reserves $25.00 Deposits $175.00 Loans $150.00 If the reserve requirement is 12 percent, what is the state of this bank? a. It has excess reserves of more than $5000. b. It has excess reserves of less than $5000. c. It has less reserves than required. d. It can make a new loan of $17,500.
Last Bank of Panorama Springs Assets: Liabilities: Reserves $25.00 Deposits $175.00 Loans $150.00 If the reserve requirement is 12 percent, what is the state of this bank? a. It has excess reserves of more than $5000. b. It has excess reserves of less than $5000. c. It has less reserves than required. d. It can make a new loan of $17,500.
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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Last Bank of Panorama Springs |
Assets: | Liabilities: |
Reserves | $25.00 | Deposits | $175.00 |
Loans | $150.00 |
If the reserve requirement is 12 percent, what is the state of this bank?
a. It has excess reserves of more than $5000.
b. It has excess reserves of less than $5000.
c. It has less reserves than required.
d. It can make a new loan of $17,500.
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