QUESTION 22LAST CHANCE BANK OF TOMBSTONEBALANCE SHEETASSETSLIABILITIES & NET WORTHcash in the vault:deposits at FedUS treasury bonds:demand deposits:$900,000$100,000$300,000$5,000,000$3,700,000$2,000,000loans:Building:capital stock:$2,000,000TOTALS:$7,000,000TOTALS:$7,000,00022. If the required reserve ratio is 5%, how much can this bank lend?$900,000O $1,000,000O $750,000$500,000O $400,000

Given:- Required reserve ratio= 5% Cash in the vault= $900000 Deposits at fed= $100000 Demand…

QUESTION 22 LAST CHANCE BANK OF TOMBSTONE BALANCE SHEET --- ASSETS LIABILITIES & NET WORTH cash in the vault: demand deposits: $900,000 $100,000 $300,000 $3,700,000 $2,000,000 $5,000,000 deposits at Fed US treasury bonds: loans: Building: capital stock: $2,000,000 TOTALS: $7,000,000 TOTALS: $7,000,000 22. If the required reserve ratio is 5%, how much can this bank lend? $900,000 $1,000,000 $750,000 $500,000 $400,000

QUESTION 22 LAST CHANCE BANK OF TOMBSTONE BALANCE SHEET --- ASSETS LIABILITIES & NET WORTH cash in the vault: demand deposits: $900,000 $100,000 $300,000 $3,700,000 $2,000,000 $5,000,000 deposits at Fed US treasury bonds: loans: Building: capital stock: $2,000,000 TOTALS: $7,000,000 TOTALS: $7,000,000 22. If the required reserve ratio is 5%, how much can this bank lend? $900,000 $1,000,000 $750,000 $500,000 $400,000

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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