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Q:Question:Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all figures are in billions of dollars. The
Q:Question:Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all figures are in billions of dollars. The reserve ratio is 25 percent. Instructlons: Enter your answers as a whole number. a. What is the amount of excess reserves in this commercial banking system? $b billion What is the maximum amount the banking system might lend? billion Show in columns 1(a) and 1^'(a) how the consolidatedA:Answer:Solution:- Calculation of Excess Reserve:- Excess ...
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
