Your bank has the following balance sheet: Assets Liabilities Checkable Reserves $90 million $380 million deposits $130 Securities million Loans $200 million Bank capital $40 million If the required reserve ratio is 20%, what will be the size of this bank (as measured by its total assets or liabilities) after $20 million deposit outflow if it just meets reserve deficiency by taking out a discount loan from the Federal Reserve? $402 million $400 million. OOOO $420 million. $412 million.

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Chapter1: Making Economics Decisions
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Your bank has the following balance sheet:
Assets
Liabilities
Checkable
Reserves $90 million
$380 million
deposits
$130
Securities
million
Loans
$200 million
Bank capital
$40 million
If the required reserve ratio is 20%, what will be the size of this bank (as measured by its total assets
or liabilities) after $20 million deposit outflow if it just meets reserve deficiency by taking out a
discount loan from the Federal Reserve?
$402 million
$400 million.
OOOO
$420 million.
$412 million.
Transcribed Image Text:Your bank has the following balance sheet: Assets Liabilities Checkable Reserves $90 million $380 million deposits $130 Securities million Loans $200 million Bank capital $40 million If the required reserve ratio is 20%, what will be the size of this bank (as measured by its total assets or liabilities) after $20 million deposit outflow if it just meets reserve deficiency by taking out a discount loan from the Federal Reserve? $402 million $400 million. OOOO $420 million. $412 million.
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