Use the table, which shows a banks balance sheet, to work Problem. The desired reserve ratio on
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Calculate the banks excess reserves. If the bank uses all of these excess reserves to make a loan, what is the quantity of the loan and the quantity of total deposits after the bank has made the loan?
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Liabilities Assets (millions of dollars) 25 Checkable deposits 15 Savings deposits 60 00 Reserves at the Fed Cash in vault 90 110 Securities Loans
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The banks total deposits are 200 million so the banks ...View the full answer
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