Reserve Desired reserve Loan CAPITAL BANK RM 1,000 RM 2,000 RM17,000 RM20,000 Deposit RM20,000 RM20,000 a) Based on Cap
Posted: Fri Jul 01, 2022 8:13 am
- Reserve Desired Reserve Loan Capital Bank Rm 1 000 Rm 2 000 Rm17 000 Rm20 000 Deposit Rm20 000 Rm20 000 A Based On Cap 1 (19.18 KiB) Viewed 42 times
- Reserve Desired Reserve Loan Capital Bank Rm 1 000 Rm 2 000 Rm17 000 Rm20 000 Deposit Rm20 000 Rm20 000 A Based On Cap 2 (31.62 KiB) Viewed 42 times
a) Based on Capital Bank's T-account above, calculate. (i) The central bank's required reserve ratio. (3 marks) (ii) Capital bank's desired reserve ratio. (3 marks) (iii) The household's currency drain ratio if they decided to hold RM20,000 as cash on hand. (iv) Supposed the central bank increased the required reserve ratio to 10%, prepare t accounts for Capital Bank, Monopoly Bank and Rich Bank.