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Author Question: Suppose that the bank has the following balance sheet: If the required reserve ratio is 10 percent, ... (Read 60 times)

mydiamond

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on: Mar 16, 2019

Question 1

Suppose a bank has the following balance sheet:








If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?



Question 2

Suppose that the bank has the following balance sheet:








If the required reserve ratio is 10 percent, what is the maximum the bank can loan out? Suppose the bank makes this loan and the borrower spends the money, which is deposited in a different bank. Show the impact of these transactions on the bank's balance sheet.

Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by mydiamond on Mar 16, 2019

aloop

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Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mydiamond

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Reply #2 on: Mar 16, 2019
TY


aloop

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Reply #3 on: Mar 16, 2019
You're welcome


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