It is the holiday season, and you withdraw $2,000 from your account at First National Bank to purchase gifts. Complete the following table to show how the bank's balance sheet changes, assuming a required reserve ratio of 20%. First National Bank Assets (Dollars) Reserves Addendum: Changes in Reserves Actual reserves: Liabilities (Dollars) Checking Deposits Required reserves Excess reserves
It is the holiday season, and you withdraw $2,000 from your account at First National Bank to purchase gifts. Complete the following table to show how the bank's balance sheet changes, assuming a required reserve ratio of 20%. First National Bank Assets (Dollars) Reserves Addendum: Changes in Reserves Actual reserves: Liabilities (Dollars) Checking Deposits Required reserves Excess reserves
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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