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Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves Loans $80,000 $720,000 Liabilities Deposits $800,000

Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves Loans $80,000 $720,000 Liabilities Deposits $800,000

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the information for Better Bank below to respond to the next two items. 12. 13. a. b. C. d. a. b. Assets Bank Reserves Loans C. d. If Better Bank's reserve ratio is 10%, Better Bank will hold reserves equal to a minimum of: $10,000. $80,000. $72,000. $720,000. $80,000 $720,000 $10,000. $72,000. $720,000. Liabilities If the reserve ratio is 10%, then Better Bank can make new loans equal to: $0. Deposits $800,000
Transcribed Image Text:Use the information for Better Bank below to respond to the next two items. 12. 13. a. b. C. d. a. b. Assets Bank Reserves Loans C. d. If Better Bank's reserve ratio is 10%, Better Bank will hold reserves equal to a minimum of: $10,000. $80,000. $72,000. $720,000. $80,000 $720,000 $10,000. $72,000. $720,000. Liabilities If the reserve ratio is 10%, then Better Bank can make new loans equal to: $0. Deposits $800,000
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