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Fed changes the required reserve ratio to 0% in response to Covid-19. The maximum Checkable deposit outflow JBI can sustain without altering its balance sheet (not selling any loans or bonds and only using primary reserves) is

Fed changes the required reserve ratio to 0% in response to Covid-19. The maximum Checkable deposit outflow JBI can sustain without altering its balance sheet (not selling any loans or bonds and only using primary reserves) is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet of Jaguar Bank of Indianapolis (JBI) on January 2, 2020 is given below. All numbers are in dollars. There are no mandatory reserve requirements on balances in savings and time deposits. Assets Liabilities and net worth Cash 120 Checkable deposits 500 Required reserves 50 Savings deposits 750 Excess reserves 150 Time deposits 600 T-bills 280 Loans 1400 Equity 150 Total 2000 Total 2000 Fed changes the required reserve ratio to 0% in response to Covid-19. The maximum Checkable deposit outflow JBI can sustain without altering its balance sheet (not selling any loans or bonds and only using primary reserves) is
Transcribed Image Text:The balance sheet of Jaguar Bank of Indianapolis (JBI) on January 2, 2020 is given below. All numbers are in dollars. There are no mandatory reserve requirements on balances in savings and time deposits. Assets Liabilities and net worth Cash 120 Checkable deposits 500 Required reserves 50 Savings deposits 750 Excess reserves 150 Time deposits 600 T-bills 280 Loans 1400 Equity 150 Total 2000 Total 2000 Fed changes the required reserve ratio to 0% in response to Covid-19. The maximum Checkable deposit outflow JBI can sustain without altering its balance sheet (not selling any loans or bonds and only using primary reserves) is
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