Homework Answers
Actual reserves = $53,000
Checkable deposit liabilities = $100,000
Required reserve ratio = 20% = 0.2
Bank can loan out = Actual reserves + Checkable deposit liabilities - Checkable deposit liabilities * Required Reserve ratio = 53,000 + 100,000 - 100,000 * 0.2 = 133,000
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Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
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requirement.
its checkable deposits divided by its total assets.
Save
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Refer to the information and assume that Moolah...
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Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
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