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Author Question: When a bank has no excess reserves, and thus can make no more loans, it is said to be (Read 101 times)

krzymel

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Question 1

Dollar Bank is currently loaned up. If the required reserve ratio is lowered


◦ Dollar Bank's net worth will increase.
◦ Dollar Bank will have excess reserves that it can lend out.
◦ Dollar Bank will still be loaned up because it did not receive any additional deposits.
◦ Dollar Bank's actual reserves will increase, but it will still be loaned up.

Question 2

When a bank has no excess reserves, and thus can make no more loans, it is said to be


◦ bankrupt.
◦ ripe for a takeover.
◦ in receivership.
◦ loaned up.


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Marked as best answer by krzymel on Apr 19, 2019

hramirez205

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krzymel

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Reply 2 on: Apr 19, 2019
Excellent


LegendaryAnswers

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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