Answered: How much can the bank immediately loan?…

How much can the bank immediately loan? Required Reserve Ratio=20% Assets Liabilities Total Reserves=$50 Demand Deposits=$100 Loans=$20 Bonds=$30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How much can the bank immediately loan?
Required Reserve Ratio=20%
Assets
Liabilities
Total Reserves=$50
Demand Deposits=$100
Loans=$20
Bonds=$30

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