Question: The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of 5
The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of
tableAssetsLiabilities Equity,,Reserves$Chequi,osits,$LoansSharehol,equity,SecuritiesFixed assets,Total$rotal,,$
a Fill in the blanks in column reflecting the complete effect of all excess reserves being loaned out.
b The maximum possible increase in the money supply is $
c Returning to the original balance sheet, if the target reserve ratio changes to the quantity of loans the system be forced to call in will be $
Write in the figures in columns that show this process completed.
The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of
tableAssetsLiabilities Equity Chequing deposits,Reserves$$LoansShareholders equity,SecuritiesFixed assets,rotal$Total,
a Fill in the blanks in column reflecting the complete effect of all excess reserves being loaned out.
b The maximum possible increase in the money supply is $
c Returning to the original balance sheet, if the target reserve ratio changes to the quantity of loans the system be forced to call in will be $
Write in the figures in columns that show this process completed.
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