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The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2
The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency drain. What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? >>> Answer to 2 decimal places. The total quantity of loans after the banks have lent all their excess reserves is! million Assets Liabilities (millions of dollars) Reserves at the Fed 20 Checkable deposits 100 Cash in vault 15 Savings deposits 85 Securities 65 Loans 85
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