By using the table, Commercial Bank Balance Sheet Assets (S) Liabilities (S) Vault Cash 8000 Deposits 35000 Loans 27000 1. If the required reserve ratio is 15 percent, the required reserve is $_ 2. If the required reserve ratio is 15 percent, the maximum loan that the bank can newly make is $ 3. Update the balance sheet after the bank makes a new loan up to the amount determined in #2. 4. With the updated balance sheet (#3), calculate total assets ($) and total liabilities (S).

By using the table, Commercial Bank Balance Sheet Assets (S) Liabilities (S) Vault Cash 8000 Deposits 35000 Loans 27000 1. If the required reserve ratio is 15 percent, the required reserve is $_ 2. If the required reserve ratio is 15 percent, the maximum loan that the bank can newly make is $ 3. Update the balance sheet after the bank makes a new loan up to the amount determined in #2. 4. With the updated balance sheet (#3), calculate total assets ($) and total liabilities (S).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

By using the table,
Commercial Bank Balance Sheet
Assets ($)
Liabilities (S)
Vault Cash
8000
Deposits
35000
Loans
27000
1. If the required reserve ratio is 15 percent, the required reserve is $
2. If the required reserve ratio is 15 percent, the maximum loan that the bank can newly make is $
3. Update the balance sheet after the bank makes a new loan up to the amount determined in #2.
4. With the updated balance sheet (#3), calculate total assets ($) and total liabilities ($).

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