4-- Suppose a bank's balance sheet looks like this. The bank is required to hold reserves equal to 10% of deposits. Assets Reserves Loans Total Assets $ $ 800 $ +A Liabilities 5200 $ 6000 $ Deposits 6000 Total Liabilities a. How much excess reserves does the bank hold? 6000 b. How much more can this bank lend?
4-- Suppose a bank's balance sheet looks like this. The bank is required to hold reserves equal to 10% of deposits. Assets Reserves Loans Total Assets $ $ 800 $ +A Liabilities 5200 $ 6000 $ Deposits 6000 Total Liabilities a. How much excess reserves does the bank hold? 6000 b. How much more can this bank lend?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...
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