Question
Table 1 shows the financial position of Bank Uno once $4111.00 has beendeposited. Assume that the required reserve ratio is 9.00%, that banks do not
Table 1 shows the financial position of Bank Uno once $4111.00 has beendeposited.
Assume that the required reserve ratio is 9.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shownhere).
Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimalplaces.
Table 1. Bank Uno's Initial T-Account
Assets Reserves: $4111.00
Liabilities Deposits: $4111.00
Table 2. Bank Uno's T-Account After Loans
Assets Reserves: ?
Liabilities Deposits: ? Loans: ?
Table 3. Bank Duo's T-Account After Deposits and Loans
Assets Reserves: ?
Liabilities Deposits: ? Loans: ?
QUESTIONS:
What are Bank Uno's deposits in Table2?
$
What are Bank Uno's reserves in Table2?
$
What are Bank Duo's loans in Table3?
$
What are Bank Uno's loans in Table2?
$
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