The bank you own has the following balance sheet: ASSETS | LIABILITIES Reserves 75M | Deposits 500M Loans 525M | Bank Capital 100M If the bank suffers a deposit outflow of $50M with a required reserve ratio on deposits of 10%, show the resulting effects using T-accounts. As a result, what actions must you take to keep your bank from failing (show T-accounts)?
The bank you own has the following balance sheet: ASSETS | LIABILITIES Reserves 75M | Deposits 500M Loans 525M | Bank Capital 100M If the bank suffers a deposit outflow of $50M with a required reserve ratio on deposits of 10%, show the resulting effects using T-accounts. As a result, what actions must you take to keep your bank from failing (show T-accounts)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The bank you own has the following
ASSETS | LIABILITIES
Reserves 75M | Deposits 500M
Loans 525M | Bank Capital 100M
If the bank suffers a deposit outflow of $50M with a
As a result, what actions must you take to keep your bank from failing (show T-accounts)?
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