First Commercial Bank Assets Liabilities + Net Worth Reserves $200,000 $1 million Deposits          Required -- $200,000 Net Worth          Excess $50,000     Loans --     Total $1.2 million $1.2 million Total   1,000,000. 1,050,000 1,150,000 1,200,000

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...
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Question

Refer to Table 10.1. First Commercial Bank's total loans equal $________.

 

 

First Commercial Bank

Assets

Liabilities + Net Worth

Reserves

$200,000

$1 million

Deposits

         Required

--

$200,000

Net Worth

         Excess

$50,000

 

 

Loans

--

 

 

Total

$1.2 million

$1.2 million

Total

 

1,000,000.
1,050,000
1,150,000
1,200,000
 
 
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