Question: Part 2 - Practice- Use the balance sheet for Leon's Bank below to answer the following questions. Required reserves Demand deposits Excess reserves Owner's equity

Part 2 - Practice- Use the balance sheet for Leon's Bank

below to answer the following questions. Required reserves Demand deposits Excess reserves

Part 2 - Practice- Use the balance sheet for Leon's Bank below to answer the following questions. Required reserves Demand deposits Excess reserves Owner's equity Customer loans Government securities (bonds) $7,000 Building and xtures $4,000 6. Calculate the required reserve ratio. Explain how you got your answer. 7. Suppose that an individual deposits $5,000 of cash into her checking account. What is the immediate effect of the cash deposit on the M1 measure of the money supply? Explain

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Part 1 - Practice- Use the balance sheet for Leon's Bank below to answer the following questions. Leon's Bank Assets Liabilities Required reserves $1,000 Demand deposits $10,000 Excess reserves $ 0...

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