Assume that the required reserve ratio is 7.00%. The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula Mae then deposits the money in her account back at the Smithville Bank. Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to the nearest cent. What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2? Table 1. Original Assets and Liabilities $ $ Assets $ reserves: $3201.00 Table 2. Assets and Liabilities After Bank Makes a Loan Assets reserves: ? Liabilities loans: ? deposits: $3201.00 Liabilities deposits: ?

Assume that the required reserve ratio is 7.00%. The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula Mae then deposits the money in her account back at the Smithville Bank. Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to the nearest cent. What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2? Table 1. Original Assets and Liabilities $ $ Assets $ reserves: $3201.00 Table 2. Assets and Liabilities After Bank Makes a Loan Assets reserves: ? Liabilities loans: ? deposits: $3201.00 Liabilities deposits: ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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