Table 1 shows the financial position of Bank Uno once $2665.00 has been deposited.Assume that the required reserve ratio is 6.00%, that banks do not keep excess reserves, and that all the money loaned outfrom Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here).Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify allanswers to two decimal places.Table 1. Bank Uno's Initial T-AccountAssetsLiabilitiesReserves: $2665.00Deposits: $2665.00Table 2. Bank Uno's T-Account After LoansAssetsLiabilitiesReserves: ?Deposits: ?Loans: ?Table 3. Bank Duo's T-Account After Deposits and LoansAssetsLiabilitiesReserves: ?Deposits: ?Loans: ? What are Bank Uno's deposits in Table 2?$What are Bank Uno's reserves in Table 2?$What are Bank Duo's loans in Table 3?What are Bank Uno's loans in Table 2?$

Required Reserve Ratio are defined as the portion of their liabilities that the commercial banks…

Table 1 shows the financial position of Bank Uno once $2665.00 has been deposited. Assume that the required reserve ratio is 6.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places.

Table 1 shows the financial position of Bank Uno once $2665.00 has been deposited. Assume that the required reserve ratio is 6.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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