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ASSETS cash in the vault: deposit at the Fed US treasury bonds: loans: building: TOTALS: LIABILITIES & NET WORTH $300,000 demand deposits*: $5,000,000 $300,000 $100,000 $2,900,000 $600,000 $5,600,000 $2,000,000 capital stock: $5,600,000 TOTALS: *Note: demand deposits are regular checking accounts

ASSETS cash in the vault: deposit at the Fed US treasury bonds: loans: building: TOTALS: LIABILITIES & NET WORTH $300,000 demand deposits*: $5,000,000 $300,000 $100,000 $2,900,000 $600,000 $5,600,000 $2,000,000 capital stock: $5,600,000 TOTALS: *Note: demand deposits are regular checking accounts

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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01. This bank's actual reserves are $_______

02. Assuming a required reserve ratio of 10%, this bank's requirered reserves are $_______.

3. Assuming a required reserve ratio of 10%, the amount of money that the whole baning system can create is $_____

4. Assuming a required reserve ratio of 20%, the impact on the quantity of money issued by the whole banking system will be $__________.

ASSETS cash in the vault: deposit at the Fed US treasury bonds: loans: building: TOTALS: LIABILITIES & NET WORTH $300,000 demand deposits*: $5,000,000 $300,000 $100,000 $2,900,000 $600,000 $5,600,000 $2,000,000 capital stock: $5,600,000 TOTALS: *Note: demand deposits are regular checking accounts
Transcribed Image Text:ASSETS cash in the vault: deposit at the Fed US treasury bonds: loans: building: TOTALS: LIABILITIES & NET WORTH $300,000 demand deposits*: $5,000,000 $300,000 $100,000 $2,900,000 $600,000 $5,600,000 $2,000,000 capital stock: $5,600,000 TOTALS: *Note: demand deposits are regular checking accounts
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