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Q3) a) buys bonds Min cash reserves = Assets deposits x RRR $1,000,000 x 0.2 = $200,000 loaned out = $IM-200,000 = $800,000 Liabilities
Q3) a) buys bonds Min cash reserves = Assets deposits x RRR $1,000,000 x 0.2 = $200,000 loaned out = $IM-200,000 = $800,000 Liabilities deposits = $1009000 MB- C. MS=MB x RRR # $IM X 1 = $1MX5 0,2= $5M UH S
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
