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Author Question: Consider the following T-account for National City Bank: If the required reserve ratio is lowered to ... (Read 70 times)

cherise1989

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Question 1

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent.








As a result of the transaction, the bank can make a maximum loan of


◦ $0.
◦ $200.
◦ $1,800.
◦ $2,000.

Question 2

Consider the following T-account for National City Bank:








If the required reserve ratio is lowered to 8 percent, how much can National City loan out?


◦ $10,000
◦ $8,000
◦ $2,000
◦ $0


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Marked as best answer by cherise1989 on Mar 16, 2019

ktidd

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cherise1989

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Reply 2 on: Mar 16, 2019
Great answer, keep it coming :)


Dinolord

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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