The table shows the balance sheet of a banking system (agrogated over al banks) The desired reserve ratio on all deposits is 5 percent. There is no currency drain Assets Liabilities (millions of dollars) What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Reserves at the Fed Cash in vault 25 Checkable deposits 100 20 Savings deposits 100 >>> Answer to 2 decimal places Securities 65 90 Loans The total quantity of loans after the banks have lent all their excess reserves is Smillion The total quantity of deposits after the banks have lent all their excess reserves is Smillion
The table shows the balance sheet of a banking system (agrogated over al banks) The desired reserve ratio on all deposits is 5 percent. There is no currency drain Assets Liabilities (millions of dollars) What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Reserves at the Fed Cash in vault 25 Checkable deposits 100 20 Savings deposits 100 >>> Answer to 2 decimal places Securities 65 90 Loans The total quantity of loans after the banks have lent all their excess reserves is Smillion The total quantity of deposits after the banks have lent all their excess reserves is Smillion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The table shows the balance sheet of a banking system (aggregated over all
banks) The desired reserve ratio on all deposits is 5 percent. There is no currency
drain
Assets
Liabilities
(millions of dollars)
What is the quantity of loans and the quantity of total deposits when the banks
have no excess reserves?
Reserves at the
Fed
Cash in vault
25
Checkable deposits
Savings deposits
100
20
100
>>> Answer to 2 decimal places
Securities
65
Loans
90
The total quantity of loans after the banks have lent all their excess reserves is
SOmilion.
The total quantity of deposits after the banks have lent all their excess reserves is
Smillion
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