The Cal Poly Bank has the following balance sheet Assets Liabilities____________
ID: 1244313 • Letter: T
Question
The Cal Poly Bank has the following balance sheet Assets Liabilities_____________________________ Cash (reserves) $10,000 Deposits $150,000 Deposited at the Fed $9,000 Loans $181,000 Capital $50,000________________________ Total $200,000 $200,000 The required reserve ratio on all deposits is 6%. A.) What, if any, are this banks, The Cal Poly Bank, excess reserves? B.) How much amount will this bank be able to loan out? C.) If there is no currency drain and all funds loaned out by this bank are deposited back in this bank, what are the bank's excess reserves, if any, after the new deposit has been made and how much new loan this bank might be able to create?. The required ration on all deposits is now 10% ( Answer question A,B& C )Explanation / Answer
A) excess reserves =150000*6/100 - 9000=0 B) 50000