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Table 1 shows the financial position of the Smithville Bank once $4441.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of Assets Liabilities the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula reserves: $4441.00 deposits: $4441.00 Mae then deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes a Loan Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to Assets Liabilities the nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? 2$ What are the bank's reserves in Table 2? 2$ What are the bank's deposits in Table 2? 2$

Table 1 shows the financial position of the Smithville Bank once $4441.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of Assets Liabilities the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula reserves: $4441.00 deposits: $4441.00 Mae then deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes a Loan Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to Assets Liabilities the nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? 2$ What are the bank's reserves in Table 2? 2$ What are the bank's deposits in Table 2? 2$

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
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Table 1 shows the financial position of the Smithville Bank once $4441.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of Assets Liabilities the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula reserves: $4441.00 deposits: $4441.00 Mae then deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes a Loan Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to Assets Liabilities the nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2? %24 %24 %24
Transcribed Image Text:Table 1 shows the financial position of the Smithville Bank once $4441.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of Assets Liabilities the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula reserves: $4441.00 deposits: $4441.00 Mae then deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes a Loan Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to Assets Liabilities the nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2? %24 %24 %24
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