The First Bank of AIAin City Assets Liabilities Reserves $2,000 Deposits $10,000 Loans 8,000 The reserve ratio for this bank is If $1,000 is deposited into the First Bank of Johnson City, and the bank takes no other actions, its asset will increase by Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Johnson City, and if the bank makes new loans so as to keep its reserve ratio unchanged, then the amount of new loans that it makes will be
The First Bank of AIAin City Assets Liabilities Reserves $2,000 Deposits $10,000 Loans 8,000 The reserve ratio for this bank is If $1,000 is deposited into the First Bank of Johnson City, and the bank takes no other actions, its asset will increase by Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Johnson City, and if the bank makes new loans so as to keep its reserve ratio unchanged, then the amount of new loans that it makes will be
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 31P: Humongous Bank is the only bank in the economy. The people in this economy have 20 million in money,...
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