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Assume that excess reserves = $5,000. Loans = $8,000. Treasury bonds = $6,500. Demand deposits = $19,000 and Required reserves = $1,900. Provide a T
Assume that excess reserves = $5,000. Loans = $8,000. Treasury bonds = $6,500. Demand deposits = $19,000 and Required reserves = $1,900.
- Provide a T account
- Calculate owner's equity
- Calculate the reserve requirement ratio (RRR)
If Sam deposits $2,350 in this bank.
- Provide a new T account
- Calculate the new RRR. How much is the new excess reserve? What does this number represent?
- What is the change in total money supply?
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
