Question
Question 2 Assume that Bank Ally is the one of commercial bank in a country with zero excess reserve. Bank Ally receives a cash deposit
Question 2 Assume that Bank Ally is the one of commercial bank in a country with zero excess reserve. Bank Ally receives a cash deposit of RM40,000 by Mr. Kai who open a new checking account. Assume that a required reserve ratio is 8 per cent. Based on the information given:
a) Construct a balance sheet for Bank Ally. b) Calculate the total deposits. c) Calculate the total reserves. d) Calculate the total loans created.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
