Balance sheet of the Spring bank Assets Liabilities Cash $ 4,000 Deposited with the Fed
Posted: Thu May 19, 2022 10:11 am
Balance sheet of the Spring bank
Assets
Liabilities
Cash
$ 4,000
Deposited with the Fed $ 3,000
Loans
$ 113,000
Deposits $ 100,000
Capital $ 20,000
Total
$ 120,000
Total $
120,000
The required reserve ratio (RRR) on all deposits is 6%
a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create
because of the excess reserves?
c. How much new amount of loan the entire banking system be able
to create because of the excess reserves?
d. What would be the excess reserves of this bank after the RRR
is changed to 5%?
e. How much new amount of loan will this bank be able to create
with the RRR of 5%?
f. How much new amount of loan the entire banking system be able
to create because of the excess reserves?
g. What happens to money supply after reducing the RRR
from 6% to 5%?
Assets
Liabilities
Cash
$ 4,000
Deposited with the Fed $ 3,000
Loans
$ 113,000
Deposits $ 100,000
Capital $ 20,000
Total
$ 120,000
Total $
120,000
The required reserve ratio (RRR) on all deposits is 6%
a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create
because of the excess reserves?
c. How much new amount of loan the entire banking system be able
to create because of the excess reserves?
d. What would be the excess reserves of this bank after the RRR
is changed to 5%?
e. How much new amount of loan will this bank be able to create
with the RRR of 5%?
f. How much new amount of loan the entire banking system be able
to create because of the excess reserves?
g. What happens to money supply after reducing the RRR
from 6% to 5%?