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Author Question: Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following ... (Read 117 times)

biggirl4568

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Question 1

Table 14-3







Refer to Table 14-3.  Consider the above simplified balance sheet for a bank. If the required reserve ratio is 10 percent, the bank can make a maximum loan of


◦ $2,000.
◦ $5,000.
◦ $6,300.
◦ $45,000.

Question 2

Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account.








At this point, what percentage of the new deposits does Wells Fargo hold in reserves?


◦ 100 percent
◦ 10 percent
◦ 5 percent
◦ 1 percent


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Marked as best answer by biggirl4568 on Mar 16, 2019

lkoler

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lkoler

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