Please help Use the information for Better Bank below to respond to the next two items.12.13.a.b.C.d.a.b.AssetsBank ReservesLoansC.d.If Better Bank's reserve ratio is 10%, Better Bank will hold reserves equal to a minimumof:$10,000.$80,000.$72,000.$720,000.$80,000$720,000$10,000.$72,000.$720,000.LiabilitiesIf the reserve ratio is 10%, then Better Bank can make new loans equal to:$0.Deposits $800,000

The amount of reservable liabilities that commercial banks must keep onto rather than lend out or…

Answered: Use the information for Better Bank…

Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves Loans $80,000 $720,000 Liabilities Deposits $800,000

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 4WNG

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Question

Please help

Use the information for Better Bank below to respond to the next two items.
12.
13.
a.
b.
C.
d.
a.
b.
Assets
Bank Reserves
Loans
C.
d.
If Better Bank's reserve ratio is 10%, Better Bank will hold reserves equal to a minimum
of:
$10,000.
$80,000.
$72,000.
$720,000.
$80,000
$720,000
$10,000.
$72,000.
$720,000.
Liabilities
If the reserve ratio is 10%, then Better Bank can make new loans equal to:
$0.
Deposits $800,000

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