10:13 mtroyal.mobius.cloud - Private اس The balance sheet below shows the effect of a new 2,400 deposit in Bank A. Assume that the commercial banks have established a 16 percent desired reserve and that no bank holds excess reserves. Assets Reserves 2,400 Loans 0 BANK A Liabilities Deposits 2,400 Assume that Bank A lends its excess reserves to Mr. Jones who spends the proceeds of the loan. Show Bank A's new balance sheet BANK A Assets Liabilities Reserves 384 Deposits 2400 Loans 2016 The money Mr. Jones borrows is deposited in Bank B. Bank B lends its excess reserves to Mr. Smith. Show Bank B's balance sheet after the loan has been made out. BANK B Assets Liabilities Reserves 322.56 Deposits 2016 Loans 1693.44 The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr. Black. Show Bank C's balance sheet after the loan has been made out. BANK C Submit Assignment Quit & Save Back Question Menu Next 10:13 πσοτινσο 022.30 Loans 1693.44 mtroyal.mobius.cloud - Private Deposits ZUTU اس The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr. Black. Show Bank C's balance sheet after the loan has been made out. Assets BANK C Liabilities Reserves 270.95 Deposits 1693.44 Loans 1422.49 The money Mr. Black borrows is deposited in Bank D. Bank D lends its excess reserves to Mr. Green. Show Bank D's balance sheet after the loan has been made out. BANK D Assets Liabilities Reserves 227.60 Deposits 1422.49 Loans 1194.89 If the above process continues to completion, the following totals will exist for the banking system: Part 7: Deposits Number Part 8: Reserves Number Part 9: Loans Number Submit Assignment Quit & Save Back Question Menu Next
10:13 mtroyal.mobius.cloud - Private اس The balance sheet below shows the effect of a new 2,400 deposit in Bank A. Assume that the commercial banks have established a 16 percent desired reserve and that no bank holds excess reserves. Assets Reserves 2,400 Loans 0 BANK A Liabilities Deposits 2,400 Assume that Bank A lends its excess reserves to Mr. Jones who spends the proceeds of the loan. Show Bank A's new balance sheet BANK A Assets Liabilities Reserves 384 Deposits 2400 Loans 2016 The money Mr. Jones borrows is deposited in Bank B. Bank B lends its excess reserves to Mr. Smith. Show Bank B's balance sheet after the loan has been made out. BANK B Assets Liabilities Reserves 322.56 Deposits 2016 Loans 1693.44 The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr. Black. Show Bank C's balance sheet after the loan has been made out. BANK C Submit Assignment Quit & Save Back Question Menu Next 10:13 πσοτινσο 022.30 Loans 1693.44 mtroyal.mobius.cloud - Private Deposits ZUTU اس The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr. Black. Show Bank C's balance sheet after the loan has been made out. Assets BANK C Liabilities Reserves 270.95 Deposits 1693.44 Loans 1422.49 The money Mr. Black borrows is deposited in Bank D. Bank D lends its excess reserves to Mr. Green. Show Bank D's balance sheet after the loan has been made out. BANK D Assets Liabilities Reserves 227.60 Deposits 1422.49 Loans 1194.89 If the above process continues to completion, the following totals will exist for the banking system: Part 7: Deposits Number Part 8: Reserves Number Part 9: Loans Number Submit Assignment Quit & Save Back Question Menu Next
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Only do the last part where it says
If the above process continues to completion, the following totals will exist for the banking system:
Part 7: Deposits
Part 8: Reserves
Part 9: Loans
Transcribed Image Text:10:13
mtroyal.mobius.cloud - Private
اس
The balance sheet below shows the effect of a new 2,400 deposit in Bank
A. Assume that the commercial banks have established a 16 percent
desired reserve and that no bank holds excess reserves.
Assets
Reserves 2,400
Loans 0
BANK A
Liabilities
Deposits 2,400
Assume that Bank A lends its excess reserves to Mr. Jones who spends the
proceeds of the loan. Show Bank A's new balance sheet
BANK A
Assets
Liabilities
Reserves 384
Deposits 2400
Loans 2016
The money Mr. Jones borrows is deposited in Bank B. Bank B lends its
excess reserves to Mr. Smith. Show Bank B's balance sheet after the loan
has been made out.
BANK B
Assets
Liabilities
Reserves 322.56
Deposits 2016
Loans 1693.44
The money Mr. Smith borrows is deposited in Bank C. Bank C lends its
excess reserves to Mr. Black. Show Bank C's balance sheet after the loan
has been made out.
BANK C
Submit Assignment
Quit & Save
Back
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Transcribed Image Text:10:13
πσοτινσο 022.30
Loans 1693.44
mtroyal.mobius.cloud - Private
Deposits
ZUTU
اس
The money Mr. Smith borrows is deposited in Bank C. Bank C lends its
excess reserves to Mr. Black. Show Bank C's balance sheet after the loan
has been made out.
Assets
BANK C
Liabilities
Reserves 270.95
Deposits 1693.44
Loans 1422.49
The money Mr. Black borrows is deposited in Bank D. Bank D lends its
excess reserves to Mr. Green. Show Bank D's balance sheet after the loan
has been made out.
BANK D
Assets
Liabilities
Reserves 227.60
Deposits 1422.49
Loans 1194.89
If the above process continues to completion, the following totals will exist
for the banking system:
Part 7: Deposits Number
Part 8: Reserves Number
Part 9: Loans Number
Submit Assignment
Quit & Save
Back
Question Menu
Next
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