2. Fill in your own balance sheet below! Assume the following: All Banks are required to...
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2. Fill in your own balance sheet below! Assume the following: All Banks are required to hold $1 in reserves for every $10 of deposits in this economy. All accounts were previously equal to 0 (or that we are only looking at changes), and that there are an infinite number of banks in this economy. Student Run Credit Union Reserve:3000 ASSETS LIABILITIES Demand deposits: 3000 || a. Suhan has $3000 cash in hand. Suppose that he deposits all of this in the Student Run Credit Union. Fill the following table for Student Run Credit Union above immediately after Suhan has made his deposit. Be sure to label all entries. And make sure they are balanced! b. Suppose the Student Run Credit Union would like to make the largest loan they can at this time. i. ii. How much will the loan be? Show this change on the balance sheet. 2. Fill in your own balance sheet below! Assume the following: All Banks are required to hold $1 in reserves for every $10 of deposits in this economy. All accounts were previously equal to 0 (or that we are only looking at changes), and that there are an infinite number of banks in this economy. Student Run Credit Union Reserve:3000 ASSETS LIABILITIES Demand deposits: 3000 || a. Suhan has $3000 cash in hand. Suppose that he deposits all of this in the Student Run Credit Union. Fill the following table for Student Run Credit Union above immediately after Suhan has made his deposit. Be sure to label all entries. And make sure they are balanced! b. Suppose the Student Run Credit Union would like to make the largest loan they can at this time. i. ii. How much will the loan be? Show this change on the balance sheet.
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Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
Posted Date:
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