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Practice IX MS Word~ 95 T Insert Table Chart Text Shape Media Comment Scenario 14-1: Bank A has a required reserve ratio of 20%.
Practice IX MS Word~ 95 T Insert Table Chart Text Shape Media Comment Scenario 14-1: Bank A has a required reserve ratio of 20%. Assets Liabilities Reserves Loans $3,000 $13,000 Deposits 1. Refer to Scenario 14-1. This bank currently holds, $10,000 Stockholders' Equity $6,000 the maximum amount by which the bank can expand its loans is in excess reserves and A) $1,000; $1,000 B) $2,000; $1,000 C) $3,000; $3,000 D) $10,000, $2,000 2. Refer to Scenario 14-1. If the bank makes the maximum loan it can by creating deposit accounts for the borrowers within the bank, Deposits will equal and Reserves will equal_ A) $9,000; $2,000 B) $10,000; $3,000 C) $11,000; $3,000 D) $16,000; $13,000 3. Refer to Scenario 14-1. If the bank makes the maximum loan it can by creating deposit accounts for the borrowers within the bank, Loans will equal Equity will equal A) $10,000; $5,000 B) $13,000; $6,000 C) $14,000; $6,000 D) $23,000; $16,000 4. Banks can make additional loans when required reserves are A) greater than total reserves. B) less than total reserves. and Stockholders' C) less than total deposits. D) less than total loans. Scenario 14-2. Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. 5. Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A's reserves immediately increase by and the bank's excess reserves increase by COMC 3 A) $2,000; $8,000. B) $8,000; $2,000. C) $10,000; $2,000. D) $10,000; $8,000. 6. Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A can make a maximum loan of and the checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of A) $2,000; $10,000. B) $8,000; $10,000. C) $8,000; $50,000. D) $10,000; $100,000. 382 words tv A Aa Collab
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