Reserves Loans Assets The First Bank of Roswell $30,000 Deposits $170,000 be unable to make any new loans. O have $5,000 in excess reserves. Liabilities Refer to Table 29-3. Suppose the bank faces a reserve requirement of 15 percent. A customer withdraws $25,000 from his account at the bank. If the bank takes no other action, it will have $64,000 in excess reserves. $200,000 be in a position to make new loans equal to a maximum of $3,750.

Reserves Loans Assets The First Bank of Roswell $30,000 Deposits $170,000 be unable to make any new loans. O have $5,000 in excess reserves. Liabilities Refer to Table 29-3. Suppose the bank faces a reserve requirement of 15 percent. A customer withdraws $25,000 from his account at the bank. If the bank takes no other action, it will have $64,000 in excess reserves. $200,000 be in a position to make new loans equal to a maximum of $3,750.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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