You are given this account for a bank: Assets Liabilities $ 750 $4,250 Reserves $5,000 Deposits Loans The required reserve ratio is 12 percent. Given its deposits of $5,000, the bank is required to hold $ 600 as reserves. (Enter your response as an integer.) The bank holds excess reserves of $ 150 . (Enter your response as an integer.) The bank can increase its loans by $ (Round your response to two decimal places.)

You are given this account for a bank: Assets Liabilities $ 750 $4,250 Reserves $5,000 Deposits Loans The required reserve ratio is 12 percent. Given its deposits of $5,000, the bank is required to hold $ 600 as reserves. (Enter your response as an integer.) The bank holds excess reserves of $ 150 . (Enter your response as an integer.) The bank can increase its loans by $ (Round your response to two decimal places.)

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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