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Suppose a customer with a checking account at Wells Fargo, needs to borrow $90,000. What is the maximum this bank can lend? Wells Fargo Assets
Suppose a customer with a checking account at Wells Fargo, needs to borrow $90,000. What is the maximum this bank can lend?
Wells Fargo | |
Assets | Liabilities |
Reserves +$100,000 | Deposits $100,000 |
If the required reserve ratio is
0.150.15,
or
1515
percent, and Wells Fargo currently has no excess reserves, the maximum loan Wells Fargo can make as result of this transaction is
$nothing.
(Enter your response rounded to the nearest whole number).
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