Question: The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 10% Reserves Loans Securities od assets 520,000
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 10% Reserves Loans Securities od assets 520,000 124.000 34,000 18,000 Liabilities/Equity Demand Deposits Shareholders' equity $164.000 40,000 Total 190,000 Total 184,000 The Oilers Bank is Click to select) by 5 b. The bank makes a loan equal to the excess reserves and the borrower wites a cheque for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is 5 c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bon). The amount of excess reserves held by the Oilers Bankis 5
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