Bank required reserve-bank excess reserve


Give the assets: cash in the vault: 300,000

Deposit at the Fed: 100,000

US treasury bonds: 300,000

Loans: 1,900,000

Building: 1,000,000

Liabilities and net worth:

demand deposit: 3,000,000

Capital stock: 600,000

What are the bank's required reserve, bank's excess reserve, how much can this bank lend, how much can the entire banking system create? if the required reserve ratio is 10%?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Bank required reserve-bank excess reserve
Reference No:- TGS066178

Expected delivery within 24 Hours