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Your bank has the following balance sheet: Assets (in Millions US$) Reserves-50 securities- 50 Loans-150 Liabilities (in Millions US$) Checkable Deposits- 200 Bank capital- 50
Your bank has the following balance sheet:
Assets (in Millions US$)
Reserves-50
securities- 50
Loans-150
Liabilities (in Millions US$)
Checkable Deposits- 200
Bank capital- 50
If the required reserve ratio is 10%, what actions should the bank manager take if there is an
unexpected deposit outflow of US$50 million?
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