4 +11.CashDeposited with theFedLoansTotal1Assets:$4,000$4,000$192,000$200,000Calculate the following if the RRR is 6%Total DepositsCapitalTotalLiabilities:$120,000$80,000$200,0001. Actual Reserve (AR) of the Bank of Your Class2. Required Reserve (RR) of the Bank of Your Class3. Excess Reserve (ER) of the Bank of Your Class4. How much new loans (NL) the Bank of Your Class can create because of thisExcess Reserve (ER)?5. How much new loans (NL) the entire banking system can crate because of thisExcess Reserve?

A commercial bank has accepts deposits of people. The bank has to kept a fraction of that deposits…

Answered: Cash Deposited with the Fed Loans Total…

Cash Deposited with the Fed Loans Total Assets: $4,000 $4,000 $192,000 $200,000 Total Deposits Capital Total Liabilities: $120,000 $80,000 $200,000

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

4 +
11.
Cash
Deposited with the
Fed
Loans
Total
1
Assets:
$4,000
$4,000
$192,000
$200,000
Calculate the following if the RRR is 6%
Total Deposits
Capital
Total
Liabilities:
$120,000
$80,000
$200,000
1. Actual Reserve (AR) of the Bank of Your Class
2. Required Reserve (RR) of the Bank of Your Class
3. Excess Reserve (ER) of the Bank of Your Class
4. How much new loans (NL) the Bank of Your Class can create because of this
Excess Reserve (ER)?
5. How much new loans (NL) the entire banking system can crate because of this
Excess Reserve?

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