a). Calculate excess reserves when required reserve ratio on demand deposit is 14% and required reserve ratio on time deposit is 3%. b). suppose that required reserve ratios are changed to 16% on demand deposits and 0% on time deposits. Calculate excess reserves c. suppose bank sells 3 million in securities on the open market. Calculate the change in the bank's excess reserves when the required reserve ratio on demand deposits is 14%

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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a). Calculate excess reserves when required reserve ratio on demand deposit is 14% and required reserve ratio on time deposit is 3%. b). suppose that required reserve ratios are changed to 16% on demand deposits and 0% on time deposits. Calculate excess reserves c. suppose bank sells 3 million in securities on the open market. Calculate the change in the bank's excess reserves when the required reserve ratio on demand deposits is 14%

11.
Reserves 48
Loans
assets
Securities
280
182
liabilities
demand deposits 300
time deposits
capital
200
10
Transcribed Image Text:11. Reserves 48 Loans assets Securities 280 182 liabilities demand deposits 300 time deposits capital 200 10
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