Table 1 shows the financial position of Bank Uno once $3381.00 has been deposited. Assume that the required reserve ratio is 9.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places. Table 1. Bank Uno's Initial T-Account Assets Liabilities Reserves: $3381.00 Deposits: $3381.00 Table 2. Bank Uno's T-Account After Loans
Table 1 shows the financial position of Bank Uno once $3381.00 has been deposited. Assume that the required reserve ratio is 9.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places. Table 1. Bank Uno's Initial T-Account Assets Liabilities Reserves: $3381.00 Deposits: $3381.00 Table 2. Bank Uno's T-Account After Loans
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 18CQ
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Question
Table 1 shows the financial position of Bank Uno once $3381.00 has been deposited.
Assume that the
Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places.
Table 1. Bank Uno's Initial T-Account
| Assets | Liabilities |
|---|---|
| Reserves: $3381.00 | Deposits: $3381.00 |
Table 2. Bank Uno's T-Account After Loans
| Assets | Liabilities |
|---|---|
| Reserves: ? | Deposits: ? |
| Loans: ? |
Table 3. Bank Duo's T-Account After Deposits and Loans
| Assets | Liabilities |
|---|---|
| Reserves: ? | Deposits: ? |
| Loans: ? |
What are Bank Uno's deposits in Table 2?
$
What are Bank Uno's reserves in Table 2?
$
What are Bank Duo's loans in Table 3?
$
What are Bank Uno's loans in Table 2?
$
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