The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency drain. What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? >>>Answer to 2 decimal places. The total quantity of loans after the banks have lent all their excess reserves is $ million Assets Reserves at the Fed Cash in vault Securities Loans Liabilities (millions of dollars) 20 15 65 85 Checkable deposits Savings deposits 100 85
The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency drain. What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? >>>Answer to 2 decimal places. The total quantity of loans after the banks have lent all their excess reserves is $ million Assets Reserves at the Fed Cash in vault Securities Loans Liabilities (millions of dollars) 20 15 65 85 Checkable deposits Savings deposits 100 85
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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