Suppose that the required reserve ratio is 10%. The table below shows the balance sheet (in millions of dollars) for (commercial) Bank INF: Assets Liabilities Loans 600 Deposits 1000 Bonds 200 Reserves 200 INF's excess reserves (in millions of dollars) equal O 100 O 200 O 400

Suppose that the required reserve ratio is 10%. The table below shows the balance sheet (in millions of dollars) for (commercial) Bank INF: Assets Liabilities Loans 600 Deposits 1000 Bonds 200 Reserves 200 INF's excess reserves (in millions of dollars) equal O 100 O 200 O 400

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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Question

Suppose that the required reserve ratio is 10%. The table below shows the balance sheet
(in millions of dollars) for (commercial) Bank INF:
Assets
Liabilities
Loans
600
Deposits
1000
Bonds
200
Reserves
200
INF's excess reserves (in millions of dollars) equal
O 100
200
400

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