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Table 1 shows the financial position of the Smithville Bank once $4075.00 has been deposited. Assume that the required reserve ratio is 5.00%. The bank
Table 1 shows the financial position of the Smithville Bank once $4075.00 has been deposited. Assume that the required reserve ratio is 5.00%. The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula Mae then deposits the money in her account back at the Smithville Bank. Table 1. Original Assets and Liabilities Assets reserves: $4075.00 Liabilities deposits: $4075.00 Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to the nearest cent. Table 2. Assets and Liabilities After Bank Makes a Loan Assets Liabilities reserves: ? deposits: ? loans: 2 deposits the money in her account back at the Smithville Bank. Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to the nearest cent. Table 2. Assets and Liabilities After Bank Makes a Loan Assets Liabilities reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2
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