2. The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. 2.1 How much excess reserves does the bank now have? Show your computation. 2.2 Complete the table below for the Third National Bank. Classify the assets and liabilities and net worth. What is the total assets of Third National Bank? The figures in the table below are for the Third National Bank. All figures are in thousands of dollars. Assets Liabilities and Net Worth Stock Shares $ 420 $ _____ $ _____ Reserves 25 _____ _____ Property 300 ____ _____ Securities 100 ____ _____ Loans 100 ____ _____ Demand Deposits 105 ____ _____ 2.3. If the required reserve ratio for the Third National Bank is 10 percent, what is the monetary multiplier
2. The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves.
2.1 How much
2.2 Complete the table below for the Third National Bank. Classify the assets and liabilities and net worth. What is the total assets of Third National Bank?
The figures in the table below are for the Third National Bank. All figures are in thousands of dollars.
|
|
|
Assets |
Liabilities and Net Worth |
|
Stock Shares |
$ 420 |
$ _____ |
$ _____ |
|
Reserves |
25 |
_____ |
_____ |
|
Property |
300 |
____ |
_____ |
|
Securities |
100 |
____ |
_____ |
|
Loans |
100 |
____ |
_____ |
|
Demand Deposits |
105 |
____ |
_____ |
2.3. If the
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