Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use the following values in this T-account to answer the questios
below: (use 2 decimal places for any answer that have decimals)
ASSETS
Reserves
Loans
Gov. Bonds $1,000
Stocks $1,250
$750
LIABILITIES
$10,000
www
1. Assume that the bank only keeps Required Reserves. What is the
reserve requirement in this economy? Blank 1%
2. Based on the information provided, how much money would be
available for investments by this bank? Blank 2
3. Based on the information provided, how much money does this bank
hold in form of loans? Blank 3
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