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Assets Liabilities & Net Worth Reserves 1200 Demand Deposits 4000 Loans 2500 Securities 300 1) If the reserve requirement is 20 %, does this bank
Assets Liabilities & Net Worth Reserves 1200 Demand Deposits 4000 Loans 2500 Securities 300
| Assets | Liabilities & Net Worth | ||
| Reserves | 1200 | Demand Deposits | 4000 |
| Loans | 2500 | ||
| Securities | 300 |
| 1) If the reserve requirement is 20 %, does this bank have any excess reserves? | ||
| 2) How much can this bank safely loan out? | ||
| 3) If a customer withdraws $1000 in cash, demonstrate the change in the t-chart for this bank. | ||
| 4) What is the value of the money multiplier in this problem? |
| Assets | Liabilities & Net Worth | ||
| Reserves | 2500 | Demand Deposits | 10,000 |
| Loans | 5500 | ||
| Securities | 2000 | Net Worth | 3000 |
| Land | 3000 |
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
