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Consider the data in the table of commercial bank holdings for the year of the financial crisis and two years following the crisis. % of
Consider the data in the table of commercial bank holdings for the year of the financial crisis and two years following the crisis. % of Deposits 2008 % of Deposits 2010 % of Deposits 2014 Total Funds 152.6 144.3 144.3 SOURCES of FUNDS Deposits 100.00 100.0 100.0 Borrowing 35.4 26.0 16.7 Own capital & other 17.2 18.3 27.6 USES of FUNDS Cash Assets 2.6 14.3 28.0 Liquid Assets 4.1 1.3 Securities & other assets 44.6 39.5 40.8 Loans 101.2 89.2 75.4 What must have happened to the size of the simple deposit multiplier between the years 2008 and 2014? Explain how you came to this conclusion and what impacted the deposit multiplier. B I U I E !!! X x? Insert Formula Consider the data in the table of commercial bank holdings for the year of the financial crisis and two years following the crisis. % of Deposits 2008 % of Deposits 2010 % of Deposits 2014 Total Funds 152.6 144.3 144.3 SOURCES of FUNDS Deposits 100.00 100.0 100.0 Borrowing 35.4 26.0 16.7 Own capital & other 17.2 18.3 27.6 USES of FUNDS Cash Assets 2.6 14.3 28.0 Liquid Assets 4.1 1.3 Securities & other assets 44.6 39.5 40.8 Loans 101.2 89.2 75.4 What must have happened to the size of the simple deposit multiplier between the years 2008 and 2014? Explain how you came to this conclusion and what impacted the deposit multiplier. B I U I E !!! X x? Insert Formula
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