Assets Liabilities Reserves $3000 Deposits $22,000 Loans $20,000 Debt $2000 Securities $5,000 Balance sheet for Fictional First bank Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is the maximum amount that Fictional First can loan out and still meet the reserve requirement?
Assets Liabilities Reserves $3000 Deposits $22,000 Loans $20,000 Debt $2000 Securities $5,000 Balance sheet for Fictional First bank Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is the maximum amount that Fictional First can loan out and still meet the reserve requirement?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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the answer is 800 ,how plz explain thanks
![Assets
Liabilities
Reserves
$3000 Deposits
$2,000
$2000
Loans
$20,000 Debt
Securities
$5,000
Balance sheet for Fictional First bank
Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is
the maximum amount that Fictional First can loan out and still meet the reserve
requirement?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07d4a2cb-86c4-4fad-a2a8-8865c5344787%2F0d40888a-81c1-4637-a0b7-3e792b51da45%2F98n50o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assets
Liabilities
Reserves
$3000 Deposits
$2,000
$2000
Loans
$20,000 Debt
Securities
$5,000
Balance sheet for Fictional First bank
Refer to the balance sheet above. Suppose the reserve requirement is 10%. What is
the maximum amount that Fictional First can loan out and still meet the reserve
requirement?
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