Suppose a banks balance sheet looks like this (a) What is the required reserve ratio (b) How much money can this bank still lend Assets Liabilities Reserves Deposits $600 $ 40 Excess Required 60 Loans 500 Total $600 Total $600...

a 10 percent b 40 Feedback a Since required reserves are calculated ...

Suppose a banks balance sheet looks like this: (a) What is the required reserve ratio? (b) How

Question:

Suppose a bank€™s looks like this:

Assets Liabilities Reserves Deposits $600 $ 40 Excess Required 60 Loans 500 Total $600 Total $600

(a) What is the required reserve ratio?

(b) How much money can this bank still lend?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...