It is the holiday season, and you withdraw $2,000 from your account at First National Bank to purchase gifts. Complete the following table to show how the bank's balance sheet changes, assuming a required reserve ratio of 20%. First National Bank Assets (Dollars) Reserves Addendum: Changes in Reserves Actual reserves: Liabilities (Dollars) Checking Deposits Required reserves Excess reserves

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
icon
Related questions
Question
It is the holiday season, and you withdraw $2,000 from your account at First National Bank to purchase gifts.
Complete the following table to show how the bank's balance sheet changes, assuming a required reserve ratio of 20%.
First National Bank
Assets
(Dollars)
Reserves
Addendum: Changes in Reserves
Actual reserves:
Liabilities
(Dollars)
Checking Deposits
Required reserves
Excess reserves
Transcribed Image Text:It is the holiday season, and you withdraw $2,000 from your account at First National Bank to purchase gifts. Complete the following table to show how the bank's balance sheet changes, assuming a required reserve ratio of 20%. First National Bank Assets (Dollars) Reserves Addendum: Changes in Reserves Actual reserves: Liabilities (Dollars) Checking Deposits Required reserves Excess reserves
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ECON MACRO
ECON MACRO
Economics
ISBN:
9781337000529
Author:
William A. McEachern
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
MACROECONOMICS
MACROECONOMICS
Economics
ISBN:
9781337794985
Author:
Baumol
Publisher:
CENGAGE L