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Suppose that Deja owns a McDonald's franchise. She decides to move her restaurant's checking account to Wells Fargo, which causes the changes shown on the
Suppose that Deja owns a McDonald's franchise. She decides to move her restaurant's checking account to Wells Fargo, which causes the changes shown on the following T-account.
Wells Fargo
Assets Liabilities
Reserves +$100,000 Deposits $100,000
If the required reserve ratio is 05, or 5 percent, and Wells Fargo currently has no excess reserves, the maximum loan Wells Fargo can make as result of this transaction is $... (Enter your response rounded to the nearest whole number).
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