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Question 3 (1 point) Bank A has $55 in reserves. The bank has given out $480 in loans and has $430 in deposits. The reserve
Question 3 (1 point) Bank A has $55 in reserves. The bank has given out $480 in loans and has $430 in deposits. The reserve requirement is 10%. The maximum the bank can afford to lose in loan defaults without being insolvent (and going bankrupt) is: Give your answer with NO DECIMALS and no $, comma or other signs. Your Answer: Answer Question 4 (1 point) Question 4 (1 point) In order to obtain a high return on equity for their stockholders, banks want to: hold a low amount of equity to assets to spread the profit on fewer stock holders hold a high amount of equity to assets to minimize interest payments hold a low amount of equity to assets to keep the bank small hold a high amount of equity as reserves in case of deposit outflows
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