Consider the above balance sheet of a bank. a. If the required reserve ratio on checking deposits

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Consider the above balance sheet of a bank.

a. If the required reserve ratio on checking deposits is 0.10, how much must the bank maintain in required reserves?

b. How much money in excess reserves does the bank have?

c. What is the total amount of money this bank could currently loan out?

d. What is the value of the money multiplier?

e. What is the maximum amount by which the money supply could increase if this bank lends out all its excess reserves?

Reserves Loans Total Assets $30,000,000 $200,000,000 $240,000,000 Liabilities Checking deposits Savings

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Introduction To Economics Social Issues And Economic Thinking

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1st Edition

Authors: Wendy A. Stock

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Question Posted: Oct 28, 2023 07:12 AM

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Consider the above balance sheet of a bank. a. If the required reserve ratio on checking deposits

Question:

Reserves Loans Total Assets $30,000,000 $200,000,000 $240,000,000 Liabilities Checking deposits Savings deposits Total $150,000,000 $50,000,000 $200,000,000

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Introduction To Economics Social Issues And Economic Thinking

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