3) Refer to the table below and answer the questions that follow: People's Bank Assets Liabilities + Net Worth Reserves: 200,000 Deposits Required Excess Net Worth 120,000 Loans Total 900,000 Total a) Required reserves? b) Loans? c) If the money multiplier = 5, the deposits are ?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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3) Refer to the table below and answer the questions that follow:
People's Bank
Assets
Liabilities + Net Worth
Reserves:
Deposits
Net Worth
200,000
Required
Excess
120,000
Loans
Total
900,000
Total
a) Required reserves?
b) Loans?
c) If the money multiplier = 5 , the deposits are ?
d) Net worth is how much?|
e) The money supply would mostly expand to how much?
Transcribed Image Text:3) Refer to the table below and answer the questions that follow: People's Bank Assets Liabilities + Net Worth Reserves: Deposits Net Worth 200,000 Required Excess 120,000 Loans Total 900,000 Total a) Required reserves? b) Loans? c) If the money multiplier = 5 , the deposits are ? d) Net worth is how much?| e) The money supply would mostly expand to how much?
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