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If a bank has $60,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit
If a bank has $60,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is ..........
Group of answer choices
$23,333
$35000.
$38,000.
$12,000.
A bank has the following asset portfolio.
- 100 mn Government Bonds with 0 risk
- 50 mn Corporate Bonds with 25% risk
- 25 mn Junk bonds with 75% risk
What is the value of risk weighted assets?
Group of answer choices
50 mn
31 mn
75 mn
175 mn
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