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Suppose you deposit $2,000 cash from under your mattress in First National Bank. The required reserve ratio is 10%. Complete the following balance sheet to show changes in the bank's assets and liabilities. First National Bank Assets Liabilities (Dollars) Reserves Required $ Excess $ Total assets $ (Dollars) Checking deposits Total liabilities $ The maximum amount the bank can loan from this deposit is equal to $

Suppose you deposit $2,000 cash from under your mattress in First National Bank. The required reserve ratio is 10%. Complete the following balance sheet to show changes in the bank's assets and liabilities. First National Bank Assets Liabilities (Dollars) Reserves Required $ Excess $ Total assets $ (Dollars) Checking deposits Total liabilities $ The maximum amount the bank can loan from this deposit is equal to $

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...
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Suppose you deposit $2,000 cash from under your mattress in First National Bank. The required reserve ratio is 10%. Complete the following balance sheet to show changes in the bank's assets and liabilities. First National Bank Assets Liabilities (Dollars) Reserves Required $ Excess $ Total assets $ (Dollars) Checking deposits Total liabilities $ The maximum amount the bank can loan from this deposit is equal to $
Transcribed Image Text:Suppose you deposit $2,000 cash from under your mattress in First National Bank. The required reserve ratio is 10%. Complete the following balance sheet to show changes in the bank's assets and liabilities. First National Bank Assets Liabilities (Dollars) Reserves Required $ Excess $ Total assets $ (Dollars) Checking deposits Total liabilities $ The maximum amount the bank can loan from this deposit is equal to $
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