Macroeconomics (Looseleaf)
Macroeconomics (Looseleaf)
12th Edition
ISBN: 9781305399440
Author: Arnold
Publisher: Cengage
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Chapter 12, Problem 1WNG
To determine

Identify the required reserves ratio.

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Distinguish between legally required reserves and excess reserves.
If I own Hawkins Savings and Loan, and a customers makes a $8,000 deposit, what is the total amount I am able to lend if the reserve requirement is 15%?
Draw a simple T-account for First National Bank of Me, which has $9000 of deposits, a reserve ratio of 10 percent, and excess reserves of $300.
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