Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $6,000...
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Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $6,000 Deposits S 80,000 Loans $ 116,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve ratio (RRR) on all deposits is 8% How much new amount of loan will this bank be able to create with the RRR of 5%? Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $6,000 Deposits S 80,000 Loans $ 116,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve ratio (RRR) on all deposits is 8% How much new amount of loan will this bank be able to create with the RRR of 5%?
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According to the table Deposits 80000 Required reserve ratio which is the percentage of deposit th... View the full answer
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Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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