Question
Assume that Bank M is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that
Assume that Bank M is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that a customer, Mr. S, deposits RM5000 in the Bank M.
a) Construct a balance sheet for Bank M
b) Calculate the total deposits.
c) Calculate the total reserves
d) Calculate the total loans created
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Get Rich With Dividends
Authors: Marc Lichtenfeld
3rd Edition
1119985552, 978-1119985556
