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That all the information Problem 2 (10 points) Below the balance sheet of bank X: Assets Liabilities Reserves: 600,000 USD Deposits: 1,000,000 USD Excess reserves

That all the information

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Problem 2 (10 points) Below the balance sheet of bank "X": Assets Liabilities Reserves: 600,000 USD Deposits: 1,000,000 USD Excess reserves : 400,000 USD Required reserves: Loans: 1,000,000 USD Equities: 600,000 USD Total 1,600,000 USD Total 1,600,000 USD 1. What is the value of the required reserve ratio? 2. Can the bank give more loans? If yes, by how much? 3. If the bank decided to lend its maximum loans capacity, draw the new balance sheet. Assets Liabilities

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