Consider the following simplified balance sheet for a bank: Assets Liabilities $10,000 Deposits $70,000 $66,000 Stockholders' equity $6,000 in excess reserves. Reserves Loans (a) If the required reserve ratio (RR) is 10 percent, this bank currently holds $3,000 $7,000 $10,000
Consider the following simplified balance sheet for a bank: Assets Liabilities $10,000 Deposits $70,000 $66,000 Stockholders' equity $6,000 in excess reserves. Reserves Loans (a) If the required reserve ratio (RR) is 10 percent, this bank currently holds $3,000 $7,000 $10,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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