Assume the required reserve ratio is 20% Assume the bank has a check cleared aga

ID: 1206312 • Letter: A

Question

Assume the required reserve ratio is 20%

Assume the bank has a check cleared against it for $ 50,000. What are the bank's:

deman deposits________

reserves_____________

After the transaction described in questions two is completed, what are the bank's

required reserves_______________

excess reserves__________________

existing loan capability______________

Assets Liabilities and net worth Reserves 80,000 Demand Deposits 200,000 Securities 70,000 Stocks 200,000 Properties 200,000 TOTAL 400,000 400,000

Assume the bank has a check cleared against it for $ 50,000. What are the bank's:

Demand deposits_$150,000

Reserves_$70,000

After the transaction described in questions two is completed, what are the bank's

Required reserves_$30,000

Excess reserves_$40,000

Existing loan capability_$200,000.

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