Balance sheet of the Summer Bank Assets Liabilities ...
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Accounting
Balance sheet of the Summer Bank
Assets
Liabilities
Cash $ 6,000
Deposited with the Fed $ 4,000
Loans $ 140,000
Deposits $ 90,000
Capital $ 60,000
Total $ 150,000
Total $ 150,000
The required reserve ratio on all deposits is 8%
a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create because of the excess reserves?
c. How much new amount of loan will the entire banking system be able to create because of this excess reserves?
d. Answer part a, b and c if the required reserve ratio is changed to 5%.
Balance sheet of the Summer Bank
Assets | Liabilities |
|
Cash $ 6,000 Deposited with the Fed $ 4,000
Loans $ 140,000
|
Deposits $ 90,000 Capital $ 60,000 |
Total $ 150,000 | Total $ 150,000 |
The required reserve ratio on all deposits is 8%
a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create because of the excess reserves?
c. How much new amount of loan will the entire banking system be able to create because of this excess reserves?
d. Answer part a, b and c if the required reserve ratio is changed to 5%.
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