If First Bank holds $375 million in deposits and maintains a reserve ratio of 5%. Show...

  

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If First Bank holds $375 million in deposits and maintains a reserve ratio of 5%. Show the T-account of the bank: Assets Reserves Loans Final Money supply= (b) If First Bank has deposits=$500,000, reserves=$100,000 and loans-$400,000. Show the T-account of the bank: Assets Liabilities Deposits Reserves Loans Liabilities Deposits If the Fed requires banks to hold 5% as reserves. Required reserves= If the Fed requires banks to hold 5% as reserves: Excess Reserves= Final Money Supply= (c) If First Bank decides to decrease its reserves to the required amount. Show the new T-account of the bank: Final Money Supply= Assets Reserves Loans Liabilities Deposits If First Bank holds $375 million in deposits and maintains a reserve ratio of 5%. Show the T-account of the bank: Assets Reserves Loans Final Money supply= (b) If First Bank has deposits=$500,000, reserves=$100,000 and loans-$400,000. Show the T-account of the bank: Assets Liabilities Deposits Reserves Loans Liabilities Deposits If the Fed requires banks to hold 5% as reserves. Required reserves= If the Fed requires banks to hold 5% as reserves: Excess Reserves= Final Money Supply= (c) If First Bank decides to decrease its reserves to the required amount. Show the new T-account of the bank: Final Money Supply= Assets Reserves Loans Liabilities Deposits

Answer rating: 100% (QA)

TAccounts and Money Supply Calculations a First Bank with 375 million deposits and 5 reserve ratio A... View the full answer