Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million S) Rizab /Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million S) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction
Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million S) Rizab /Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million S) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand
deposits is 8%.
Berjaya Bank
Aset / Assets (million $)
Rizab / Reserves
Pinjaman / Loans
Sekuriti / Securities
Liabiliti / Liabilities (million $)
Deposit semasa
Demand deposits
Modal bank / Net Worth
30
290
150
140
30
1. Calculate the bank's excess reserves
2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the
balance sheet of Berjaya Bank after this transaction](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d65ca54-9266-46f3-aebe-39173dca4b36%2F539cedf8-e3d5-4f8c-941d-8a397f26b630%2Fwm6guax_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand
deposits is 8%.
Berjaya Bank
Aset / Assets (million $)
Rizab / Reserves
Pinjaman / Loans
Sekuriti / Securities
Liabiliti / Liabilities (million $)
Deposit semasa
Demand deposits
Modal bank / Net Worth
30
290
150
140
30
1. Calculate the bank's excess reserves
2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the
balance sheet of Berjaya Bank after this transaction
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