Refer to the balance sheet for Bank X to answer questions 16. and 17 Bank X-Balance Sheet Liabilities: Checkable Deposits $80,000,000 $800,000 Assets: Reserves; Vault Cash Reserve Balance Account with the Fed $10,000,000 Loans Outstanding; Mortgage Loans $32,000,000 Business Loans 23,000,000 Personal Loans 11,000,000 U.S. Government Securities 3,200,000 Total Loans Outstanding $69,200,000 Total Assets $80,000,000 Assuming a 12% reserve ratio, bank X has excess reserves of: a. $1 million Ob. $1.2 million c. $100,000 d. -$1.2 million
Refer to the balance sheet for Bank X to answer questions 16. and 17 Bank X-Balance Sheet Liabilities: Checkable Deposits $80,000,000 $800,000 Assets: Reserves; Vault Cash Reserve Balance Account with the Fed $10,000,000 Loans Outstanding; Mortgage Loans $32,000,000 Business Loans 23,000,000 Personal Loans 11,000,000 U.S. Government Securities 3,200,000 Total Loans Outstanding $69,200,000 Total Assets $80,000,000 Assuming a 12% reserve ratio, bank X has excess reserves of: a. $1 million Ob. $1.2 million c. $100,000 d. -$1.2 million
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 4PA
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