Question
Bank Zeus has $350 in loans and $60 in reserves, with checkable deposits at $410. The required reserve ratio is 5%. A new customer then
Bank Zeus has $350 in loans and $60 in reserves, with checkable deposits at $410. The required reserve ratio is 5%. A new customer then deposits $80 in a checking account. Next, the bank transforms all excess reserves into loans. What is the value of the loans after the transformation?
| $435.5 |
| $465.5 |
| $555 |
| $565.5 |
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
