Table 1 shows the financial position of the Smithville Bank once $3047.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Assets Liabilities Mae's Used Machines and buys a pickup truck. Eula Mae then reserves: $3047,00 deposits: $3047.00 deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes Table 2 should show the bank's accounts after the loan is a Loan made and the funds again deposited. Round all answers to the Assets Liabilities nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? %24 What are the bank's deposits in Table 2?

Table 1 shows the financial position of the Smithville Bank once $3047.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Assets Liabilities Mae's Used Machines and buys a pickup truck. Eula Mae then reserves: $3047,00 deposits: $3047.00 deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes Table 2 should show the bank's accounts after the loan is a Loan made and the funds again deposited. Round all answers to the Assets Liabilities nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? %24 What are the bank's deposits in Table 2?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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