Answer the next question(s) on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions. Assets Liabilities and net worth Reserves $ 30 Checkable $300 deposits Securities 70 Stock shares 130 Loans 130 Property 200 Refer to the above data. The commercial banking system has excess reserves of: A) $0 billion. $30 billion. $60 billion. $70 billion.

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Chapter25: Money Creation
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Answer the next question(s) on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.

                                                             Assets                    Liabilities and net worth

Reserves $    30  Checkable $300 deposits

                                            Securities               70           Stock shares                                     130

                                            Loans                   130                                

                                            Property               200                                

 

  1. Refer to the above data. The commercial banking system has excess reserves of: A) $0 billion.    
    1. $30 billion.
    2. $60 billion.
    3. $70 billion.

 

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