Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demanddeposits is 8%.Berjaya BankAset / Assets (million $)Rizab / ReservesPinjaman / LoansSekuriti / SecuritiesLiabiliti / Liabilities (million $)Deposit semasaDemand depositsModal bank / Net Worth30290150140301. Calculate the bank's excess reserves2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show thebalance sheet of Berjaya Bank after this transaction

The balance sheet of a bank records the assets and liabilities of the bank. Assets are the items…

Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million S) Rizab /Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million S) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction

Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million S) Rizab /Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million S) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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