1. able. Bank of Pleasantville
|
Assets |
Liabilities |
| Reserves $4,000 | Deposits $50,000 |
| Loans 46,000 |
Refer to Table. If the bank above do not maintain any
| a. |
17.5 percent. |
|
| b. |
8 percent. |
|
| c. |
92 percent. |
|
| d. |
100 percent. |
2. In fractional reserve banking system
|
banks have to maintain the whole deposit as reserve. |
||
|
banks have to maintain 50% of the deposits as reserve. |
||
|
banks have to maintain a percentage of deposit as reserve. |
||
|
banks do not need to maintain any deposits as reserve. |
3. in 100% reserve banking system
|
banks are able to create some money. |
||
|
banks are unable to create any money. |
||
|
banks gives all the money as loan to others. |
||
|
banks gives each other loans. |
4. In fractional reserve banking system
|
banks have to maintain the whole deposit as reserve. |
||
|
banks have to maintain 50% of the deposits as reserve. |
||
|
banks have to maintain a percentage of deposit as reserve. |
||
|
banks do not need to maintain any deposits as reserve. |
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