1. What are the actual reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 2. What are the required reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 3. What are the excess reserves of the bank?


The Not-Indicted-Yet Bank has the following assets:
Cash of $3500
U.S. Bonds worth $20000
Outstanding Loans of $90000
Deposits at the Fed of $7500
Miscellaneous of $5000
The bank also has the following liabilities:
Customer Deposits of $100000
Net Equity $26000
The required reserve ratio is 0.1.
1. What are the actual reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
2. What are the required reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
3. What are the excess reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
4. What is the maximum single loan that this individual bank can make?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
5. What is the total amount of loans that all banks taken together could generate starting with the reserve situation of this bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
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Transcribed Image Text:The Not-Indicted-Yet Bank has the following assets:
Cash of $3500
U.S. Bonds worth $20000
Outstanding Loans of $90000
Deposits at the Fed of $7500
Miscellaneous of $5000
The bank also has the following liabilities:
Customer Deposits of $100000
Net Equity $26000
The required reserve ratio is 0.1.
1. What are the actual reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
2. What are the required reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
3. What are the excess reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
4. What is the maximum single loan that this individual bank can make?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
5. What is the total amount of loans that all banks taken together could generate starting with the reserve situation of this bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
1. What are the actual reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 2. What are the required reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 3. What are the excess reserves of the bank?


The Not-Indicted-Yet Bank has the following assets:
Cash of $3500
U.S. Bonds worth $20000
Outstanding Loans of $90000
Deposits at the Fed of $7500
Miscellaneous of $5000
The bank also has the following liabilities:
Customer Deposits of $100000
Net Equity $26000
The required reserve ratio is 0.1.
1. What are the actual reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
2. What are the required reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
3. What are the excess reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
4. What is the maximum single loan that this individual bank can make?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
5. What is the total amount of loans that all banks taken together could generate starting with the reserve situation of this bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
expand button
Transcribed Image Text:The Not-Indicted-Yet Bank has the following assets:
Cash of $3500
U.S. Bonds worth $20000
Outstanding Loans of $90000
Deposits at the Fed of $7500
Miscellaneous of $5000
The bank also has the following liabilities:
Customer Deposits of $100000
Net Equity $26000
The required reserve ratio is 0.1.
1. What are the actual reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
2. What are the required reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
3. What are the excess reserves of the bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
4. What is the maximum single loan that this individual bank can make?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.
5. What is the total amount of loans that all banks taken together could generate starting with the reserve situation of this bank?
Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar.

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