New Bank Balance Sheet Assets Liability and Equity Required Reserves: $ 0.30 million Deposits: $ 1.50 million Excess Reserves: $ 1.90 million Equity: $ 1.50 million Government Bonds: $ 0.80 million To correct this situation, we can sell $0.10 million in government bonds to Typical Bank. When we sell $0.10 million in government bonds to Typical Bank, what is the (new) value of Typical Bank's excess reserves on hand? ______ Million
New Bank Balance Sheet Assets Liability and Equity Required Reserves: $ 0.30 million Deposits: $ 1.50 million Excess Reserves: $ 1.90 million Equity: $ 1.50 million Government Bonds: $ 0.80 million To correct this situation, we can sell $0.10 million in government bonds to Typical Bank. When we sell $0.10 million in government bonds to Typical Bank, what is the (new) value of Typical Bank's excess reserves on hand? ______ Million
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
Related questions
Question
New Bank Balance Sheet
Assets
|
Liability and Equity
|
---|---|
|
Deposits: $ 1.50 million
|
|
Equity: $ 1.50 million
|
Government Bonds: $ 0.80 million
|
To correct this situation, we can sell $0.10 million in government bonds to Typical Bank.
When we sell $0.10 million in government bonds to Typical Bank, what is the (new) value of Typical Bank's excess reserves on hand?
______ Million
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