The required reserve ratio is 25% for all banks. Second National Bank is capable of loaning $ (Do NOT enter the '$' in your response. Enter a whole dollar amount; do NOT enter cents.) to its customers.
The required reserve ratio is 25% for all banks. Second National Bank is capable of loaning $ (Do NOT enter the '$' in your response. Enter a whole dollar amount; do NOT enter cents.) to its customers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:First National Bank
Assets
Liabilities and Net Worth
US Treasury Bonds
$450,000
Net Worth
$500,000
Reserves (Cash)
$175,000
Checkable Deposits
$250,000
Loans
$125,000
Second National Bank
Assets
Liabilities and Net Worth
US Treasury Bonds
$100,000
Net Worth
$250,000
Reserves (Cash)
$250,000
Checkable Deposits
$100,000
Third National Bank
Liabilities and Net Worth
Assets
US Treasury Bonds
$900,000
Net Worth
$1,000,000
Reserves (Cash)
$350,000
Checkable Deposits
$500,000
Loans
$250,000
The required reserve ratio is 25% for all banks. Second
National Bank is capable of loaning $
(Do NOT
enter the '$' in your response. Enter a whole dollar
amount; do NOT enter cents.) to its customers.
Blank 1
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