The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 10 percent and there is no currency drain. Assets Liabilities (millions of dollars) Reserves at the Fed 30 What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Checkable deposits 115 Savings deposits Cash in vault 5 75 Securities 40 >>> Answer to 2 decimal places. Loans 115 The total quantity of loans after the banks have lent all their excess reserves is million.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
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How to figure out the banks' excess reserves.

The table shows the commercial banks' balance sheet (aggregated over all the
banks). The commercial banks' desired reserve ratio on all deposits is 10
percent and there is no currency drain.
Assets
Liabilities
(millions of dollars)
Reserves at the Fed 30
What is the quantity of loans and the quantity of total deposits when the banks
have no excess reserves?
Checkable deposits 115
Savings deposits
Cash in vault
5
75
Securities
40
>>> Answer to 2 decimal places.
Loans
115
The total quantity of loans after the banks have lent all their excess reserves is
million.
Transcribed Image Text:The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 10 percent and there is no currency drain. Assets Liabilities (millions of dollars) Reserves at the Fed 30 What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Checkable deposits 115 Savings deposits Cash in vault 5 75 Securities 40 >>> Answer to 2 decimal places. Loans 115 The total quantity of loans after the banks have lent all their excess reserves is million.
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