Bank West's Balance Sheet Assets Liabilities Cash $600 Deposits $20 000 Deposits at Bank of Canada $700 Capital $1 100 Loans and Mortgages $19 800 $21 100 $21 100 TABLE 26-3 Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has no excess reserves. If Bank West receives a new deposit of $1500, it can immediately expand its loans by ________ while maintaining its target reserve ratio. $1478 $1356.50 $1436 $1402.50 $1410
Bank West's Balance Sheet Assets Liabilities Cash $600 Deposits $20 000 Deposits at Bank of Canada $700 Capital $1 100 Loans and Mortgages $19 800 $21 100 $21 100 TABLE 26-3 Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has no excess reserves. If Bank West receives a new deposit of $1500, it can immediately expand its loans by ________ while maintaining its target reserve ratio. $1478 $1356.50 $1436 $1402.50 $1410
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
11.
TABLE 26-3
Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has noexcess reserves . If Bank West receives a new deposit of $1500, it can immediately expand its loans by ________ while maintaining its target reserve ratio.
| Bank West's |
| Assets | | Liabilities |
| Cash | $600 | Deposits | $20 000 |
| Deposits at Bank of Canada | $700 | Capital | $1 100 |
| Loans and Mortgages | $19 800 | $21 100 |
| $21 100 |
TABLE 26-3
Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has no
|
$1478
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||
|
$1356.50
|
||
|
$1436
|
||
|
$1402.50
|
||
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$1410
|
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