Question
Assets Liabilities Reserve Requirement is 15% Reserves= 500,000 Checking Deposits = 1,000,000 Bonds = 100,000Bank Capital = 500,000 Loans = 900,000 a. Find E, the
Assets Liabilities
Reserve Requirement is 15%
Reserves= 500,000 Checking Deposits = 1,000,000
Bonds = 100,000Bank Capital = 500,000
Loans = 900,000
a. Find E, the percentage of deposits that the bank is holding as excess reserves.
b. If $200,000 worth of the banks loans default, show the banks balance sheet immediately after the default. Assume nothing has been done to try to offset the default.
Show your work Find E, the percentage of deposits that the bank is holding as excess reserves. Show your workFind E, the percentage of deposits that the bank is holding as excess reserves. Show your workFind E, the percentage of deposits that the bank is holding as excess reserves. Show your work
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
