Assume we have a simplified banking system inbalance-sheet equilibrium. Also assume that allbanks are subject to a uniform 10 percent reserverequirement and demand deposits are the onlyform of money. A commercial bank receiving anew demand deposit of $100 would be able toextend new loans in the amount ofa. $10.b. $90.c. $100.d. $1,000.

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A: Given:Deposits = $3200Loans = $2456Excess reserve=$200

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on its liability…

A: Given the required reserve ratio  = 10% Reserve amount = 1000 Deposit amount = 7000

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A: Below is the given information: Required reserve ratio = 20% Deposit into the bank = $5000

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Q: Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks…

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A: We have given rr=0.08 and deposits = 10,000.

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A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

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A: A bank keeps a certain percentage of deposits as reserves and rest it loans out.

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Q: Assume that the commercial banking system has 500TL of deposits and the banks hold no excess…

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Q: Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on itsliability side…

A: Following are the values. Reserves = 1000 Loan = 6000 Deposits = 7000 Required reserve ratio = 10%