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kindly answer part e,f & g of Question 1. thanks! First Commercial Bank Assets Liabilities + Net Worth Reserves: $800,000 $2 million Deposits Required $200,000
kindly answer part e,f & g of Question 1. thanks!
First Commercial Bank Assets Liabilities + Net Worth Reserves: $800,000 $2 million Deposits Required $200,000 $500,000 Net Worth Exess Loans Total $2.5 million $25 million Total 1) Table 25.2 a) Refer to Table 25.2. Find First Commercial Bank's excess reserves Answer: b) Refer to Table 25.2. Find the required reserve ratio cors Answer: CER?) c) Refer to Table 25.2. Find First Commercial Bank's total loans Answer: d) Refer to Table 25.2. Find the money multiplier. Answer: e) Refer to Table 25.2. What is the maximum loan that First Commercial Ban can make if First Commercial Bank is the only bank. Answer: 1) Refer to Table 25.2. What is the maximum loan that First Commercial Ban can make if there are multiple banks. Answer: g) Refer to Table 25.2. Suppose First Commercial Bank is the only bank. Any check written on an account at First Commercial Bank is deposited in a different account at First Commercial Bank. First Commercial Ban makes the maximum loan. Show the new T account for First Commercial Bank after the maximum loan Assets Liabilities + Net Worth Reserves: Deposits Required Reserves: Excess Reserves: Net Worth Loans: Total: Total First Commercial Bank Assets Liabilities + Net Worth Reserves: $800,000 $2 million Deposits Required $200,000 $500,000 Net Worth Exess Loans Total $2.5 million $25 million Total 1) Table 25.2 a) Refer to Table 25.2. Find First Commercial Bank's excess reserves Answer: b) Refer to Table 25.2. Find the required reserve ratio cors Answer: CER?) c) Refer to Table 25.2. Find First Commercial Bank's total loans Answer: d) Refer to Table 25.2. Find the money multiplier. Answer: e) Refer to Table 25.2. What is the maximum loan that First Commercial Ban can make if First Commercial Bank is the only bank. Answer: 1) Refer to Table 25.2. What is the maximum loan that First Commercial Ban can make if there are multiple banks. Answer: g) Refer to Table 25.2. Suppose First Commercial Bank is the only bank. Any check written on an account at First Commercial Bank is deposited in a different account at First Commercial Bank. First Commercial Ban makes the maximum loan. Show the new T account for First Commercial Bank after the maximum loan Assets Liabilities + Net Worth Reserves: Deposits Required Reserves: Excess Reserves: Net Worth Loans: Total: TotalStep by Step Solution
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