Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume
Question:
Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 25%. All figures are in millions of dollars.
Assets Liabilities + Net Worth
Reserves $300 $800
Securities $400700
Loans $200
Property $600
Checkable deposits $800
Stock shares $700
(a) The amount of reserves required by the FED in this commercial banking system is equal to ________________
(b) The amount of excess reserves in this commercial banking system_________________________
(c) This banking system can safely expand its loans by ____________________________
(d) The monetary multiplier is equal to _______________________________
(e) The maximum amount of money supply that can be expanded through this commercial banking system is equal to
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn