Suppose that the required reserve ratio is 10%. The table below shows the balance sheet (in millions of dollars) for (commercial) Bank INF: Assets Liabilities Loans 600 Deposits 1000 Bonds 200 Reserves 200 INF's excess reserves (in millions of dollars) equal O 100 O 200 O 400

Suppose that the required reserve ratio is 10%. The table below shows the balance sheet (in millions of dollars) for (commercial) Bank INF: Assets Liabilities Loans 600 Deposits 1000 Bonds 200 Reserves 200 INF's excess reserves (in millions of dollars) equal O 100 O 200 O 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that the required reserve ratio is 10%. The table below shows the balance sheet
(in millions of dollars) for (commercial) Bank INF:
Assets
Liabilities
Loans
600
Deposits
1000
Bonds
200
Reserves
200
INF's excess reserves (in millions of dollars) equal
O 100
200
400

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