Answered: ASSETS LIABILITIES Required Reserves…

ASSETS LIABILITIES Required Reserves $288,000 Demand Deposits $1,800,000 Excess 12,000 Loans and Securities $1,500,000 Total Assets $1,800,000 Total Liabilities $1,800,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

29. The required reserve ratio for the bank in Table A is

A) 18 percent. B) 10 percent.

C) 12 percent. D) 16 percent.

TABLE A.
ASSETS
LIABILITIES
Required Reserves $288,000
Demand Deposits $1,800,000
Excess 12,000
Loans and Securities $1,500,000
Total Assets S1,800,000
Total Liabilities $1,800,000
29 The reguiro

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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