Use the following balance sheet for the ABO National Bank in answering thenext question(s). Assume the required reserve ratio is 20 percent.AssetsLiabilities and net worthReserves$27,000 Checkable deposits$110,000Loans50,000Securities33,000Capital stock200,000Property200,00018. Refer to the above data. This commercial bank has excess reserves of: 21. Suppose the banking system currently has $300 billion in reserves; thereserve requirement is 10 percent; and excess reserves amount to $3 billion.What is the level of deposits? *$2,970 billion$3,300 billion$2,700 billion$2,673 billionTOSHIBA

GIVEN DATA Calculation of Excess Reserve Balance. Existing Reserve = $27000 Required Reserve =…

Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Securities33,000 Capital stock200,000 Property200,000

Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Securities33,000 Capital stock200,000 Property200,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

21. Suppose the banking system currently has $300 billion in reserves; the
reserve requirement is 10 percent; and excess reserves amount to $3 billion.
What is the level of deposits? *
$2,970 billion
$3,300 billion
$2,700 billion
$2,673 billion
TOSHIBA

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The balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets Liabilities & Net Worth Reserves 90,000 Checkable Deposits 500,000 Cash 20,000 Stock Shares 270,000 Loans 125,000 Securities 235,000 Property 300,000 1. Based on the balance sheet above, how much money can the bank create? 2. If the bank creates the full amount possible, how much money can the banking system create as a result? 3. If the Federal Reserve raises the reserve ratio to 20%, how much will the bank and banking system be able to create based on the new reserve ratio?
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Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below? Assets Liabilities & Net Worth Reserves $280,000 Checking deposits $2,800,000 Loans Outstanding $2,920,000 Total $3,200,000 Net Worth Stockholders' Equity $400,000 Total $3,200,000 a. $240,000 b. zero c. $320,000 d. $280,000
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