Suppose that some commercial bank has $100M in deposits and $20M in capital. Assuming a 10% minimum reserve ratio, what is the maximum amount of loans and securities this bank can own? (exclude inter-bank loans as a possibility for this question)

Consider a bank with the following balance sheet: Assets Liabilities Required$10 millionCheckable$120million deposits millionBank capital reserves Excess $19 million $16 reserves Loans $75 Assume that required reserves are 8%. In order to avoid insolvency, regulators decide to provide the bank with $26 million in bank capital. Assume that bad news about mortgages is featured in the local newspaper, causing a bank run. As a result, $25 million in deposits is withdrawn. Assets million Liabilities millionCheckable$95million deposits millionBank сapital Required $8 reserves Excess $22 $10million reserves $75 million 1) The bank now has a capital ratio of and the bank is a) 9.5%; well-capitalized b) 5.9%; well-capitalized c) 9.5%; in a dire capital position d) 5.9%; in a dire capital position Loans

If R = 25%, actual reserves are $2,000 and checkable deposits are $9,000, then the monetarymultiplier is ____, required reserves are $____, excess reserves are $____, and the bankingsystem could potentially expand the money supply by $____.

When both deposit and loan interest rates increase at the same speed in the market, a bank tends to (      ) to make profit.   a. reinvest  b. refinance   c. keep neutral