QUESTION 31LAST CHANCE BANK OF TOMBSTONEASSETScash in the vault:deposits at FedUS treasury bonds:loans:Building:TOTALS:BALANCE SHEETLIABILITIES &$900,000 demand deposits:$100,000$300,000$3,700,000$2,000,000 capital stock:$7,000,000TOTALS:31. If the required reserve ratio is 5%, what is the level of excess reserves this bank holds?O a) $900,000Ob) $1,000,000c) $750,000d) $500,000O e) $400,000NET WORTH$5,000,000$2,000,000$7,000,000

Given:Demand deposits = $5,000,000Required reserve ratio = 5%Excess reserves =?

QUESTION 31 LAST CHANCE BANK OF TOMBSTONE ASSETS cash in the vault: deposits at Fed US treasury bonds: loans: Building: TOTALS: --- b) $1,000,000 c) $750,000 d) $500,000 O e) $400,000 BALANCE SHEET LIABILITIES & $900,000 demand deposits: $100,000 $300,000 $3,700,000 $2,000,000 $7,000,000 capital stock: TOTALS: 31. If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? O a) $900,000 NET WORTH $5,000,000 $2,000,000 $7,000,000

QUESTION 31 LAST CHANCE BANK OF TOMBSTONE ASSETS cash in the vault: deposits at Fed US treasury bonds: loans: Building: TOTALS: --- b) $1,000,000 c) $750,000 d) $500,000 O e) $400,000 BALANCE SHEET LIABILITIES & $900,000 demand deposits: $100,000 $300,000 $3,700,000 $2,000,000 $7,000,000 capital stock: TOTALS: 31. If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? O a) $900,000 NET WORTH $5,000,000 $2,000,000 $7,000,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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