The table below, shows the balance sheet of the Bruins Bank. Liabilities/Equity Assets Reserves $30 Demand Deposits $360 Loans 240 Shareholders' equity 40 Securities 90 Fixed assets 40 Total 400 Total 400 By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below. a. If the target reserve ratio is 2.5% the Bruins Bank is over-reserved b. If the target reserve ratio is 5.0% the Bruins Bank is over-reserved c. If the target reserve ratio is 7.5% the Bruins Bank is over-reserved V by $ by $ by $ d. If the target reserve ratio is 12.5% the Bruins Bank is under-reserved by $

The table below, shows the balance sheet of the Bruins Bank. Liabilities/Equity Assets Reserves $30 Demand Deposits $360 Loans 240 Shareholders' equity 40 Securities 90 Fixed assets 40 Total 400 Total 400 By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below. a. If the target reserve ratio is 2.5% the Bruins Bank is over-reserved b. If the target reserve ratio is 5.0% the Bruins Bank is over-reserved c. If the target reserve ratio is 7.5% the Bruins Bank is over-reserved V by $ by $ by $ d. If the target reserve ratio is 12.5% the Bruins Bank is under-reserved by $

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 3PA

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