If a bank has $100,000 of checkable deposits, a required reserve ratio of 8 percent, and it holds $15,000 in reserves, then what is the maximum deposit outflow it can sustain without altering its balance sheet?
If a bank has $100,000 of checkable deposits, a required reserve ratio of 8 percent, and it holds $15,000 in reserves, then what is the maximum deposit outflow it can sustain without altering its balance sheet?
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 8WNG
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![If a bank has $100,000 of checkable deposits, a required reserve ratio of 8 percent, and it
holds $15,000 in reserves, then what is the maximum deposit outflow it can sustain
without altering its balance sheet?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77b4b57c-9377-4261-94ea-8df5b8edbf7d%2Ff6c337c7-8ae1-42f8-a17f-7e681f7e0b03%2F590kxv_processed.png&w=3840&q=75)
Transcribed Image Text:If a bank has $100,000 of checkable deposits, a required reserve ratio of 8 percent, and it
holds $15,000 in reserves, then what is the maximum deposit outflow it can sustain
without altering its balance sheet?
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