Question
Consider the following bank: Assets Reserves $75 million Loans $525 million Liabilities Deposits $500 million Bank capital $100 million a. The bank suffers a deposit
Consider the following bank: Assets Reserves $75 million Loans $525 million Liabilities Deposits $500 million Bank capital $100 million a. The bank suffers a deposit outflow of $50 million with a required reserve ratio of 10%. Set up the banks balance sheet after the deposit outflow.
b. After the deposit outflow, what is the level of required reserves? Does the bank have enough reserves to meet these reserve requirements?
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Finance And Economics Discussion Series The Effects Of Welfare Reform And Related Policies On Single Mothers Welfare Use And Employment In The 1990s
Authors: United States Federal Reserve Board, Adam Looney
1st Edition
1288711409, 9781288711406
