45) First National Bank has $160 million in checkable deposits, $30 million in deposits with theFederal Reserve, $10 million cash in the bank vault, and $10 million in government bonds. Giventhe bank's minimum reserve ratio of 20% and a goal of holding zero excess reserves, how muchcan the bank issue in additional loans?a) $152 millionb) $16 millionc) $12 milliond) $8 million.

Given information: Checkable deposit = $160 billion Deposit with the Federal reserve = $30 million…

45) First National Bank has $160 million in checkable deposits, $30 million in deposits with the Federal Reserve, $10 million cash in the bank vault, and $10 million in government bonds. Given he bank's minimum reserve ratio of 20% and a goal of holding zero excess reserves, how much can the bank issue in additional loans? m) $152 million 5) $16 million ) $12 million d) $8 million.

45) First National Bank has $160 million in checkable deposits, $30 million in deposits with the Federal Reserve, $10 million cash in the bank vault, and $10 million in government bonds. Given he bank's minimum reserve ratio of 20% and a goal of holding zero excess reserves, how much can the bank issue in additional loans? m) $152 million 5) $16 million ) $12 million d) $8 million.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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