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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

A bank has deposits of Chapter 27, Problem 30P, A bank has deposits of It holds reserves of It has purchased government bonds worth It has made , example  1 It holds reserves of Chapter 27, Problem 30P, A bank has deposits of It holds reserves of It has purchased government bonds worth It has made , example  2 It has purchased government bonds worth Chapter 27, Problem 30P, A bank has deposits of It holds reserves of It has purchased government bonds worth It has made , example  3 It has made loans of Chapter 27, Problem 30P, A bank has deposits of It holds reserves of It has purchased government bonds worth It has made , example  4 Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the bank’s net worth.

To determine

To calculate: The T-account balance sheet for the bank.

Explanation

Given:

The bank with the deposits of $400. They keep $50 as reserves, purchased the government bonds of $70 and loan out $500. The T table can be formed as done below:

    AssetsAmountLiabilitiesAmount
    Government bonds70Deposits400
    Reserves50
    Loan500

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