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Assets Liabilities Total Bank Reserves $80,000 Checkable Deposits $800,000 Loans $720,000 1. If the required-reserve ratio is 10%, Better Bank must hold required reserves equal

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Assets Liabilities Total Bank Reserves $80,000 Checkable Deposits $800,000 Loans $720,000 1. If the required-reserve ratio is 10%, Better Bank must hold required reserves equal to: 80, 000 2. If the required-reserve ratio is 10%, then Better Bank is holding excess reserves equal to: 720, 000 x 10% /72000 Use the information for the banking system below to answer the next three questions. Assets Liabilities Total Bank Reserves $20 billion Checkable Deposits $100 billion Loans $70 billion Securities (Bonds) $10 billion 3. The banking system is currently fully loaned up (in equilibrium) if the required-reserve ratio is: 20 0 4. Using the required-reserve ratio found in the previous question, if the Fed buys $5 billion worth of government bonds from banks, total bank reserves will rise to $ billion and can make new loans equal to $ billion. 20. 125 billion 4 billion 5. Using the required-reserve ratio found in the previous question, if the Fed buys $5 billion worth of government bonds from the non-bank public, total bank reserves will rise to $ billion and can make new loans equal to $ billion. 70. 125 bilion 20.125 billion

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