Assets Liabilities and Equity Required Reserves $5,000 Demand Deposits $25,000 Excess Reserves $10,000 Business Loans $5,000 Student Loans $10,000 Government Securities $10,000 Owner's Equity $10,000 Total Assets $35,000 Total Liability $35,000 Random 1 - Fed Buys Bonds 21. What is the current Required Reserve Ratio? 22. Assume that the FED buys $2,000 in bonds from this bank, show the NEW total for the

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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T Chart C
Assets
Liabilities and Equity
Required Reserves
$5,000
Demand Deposits
$25,000
Excess Reserves
$10,000
Business Loans
$5,000
Student Loans
$10,000
Government Securities
$10,000
Owner's Equity
$10,000
Total Assets
$35,000
Total Liability
$35,000
Random 1 Fed Buys Bonds
21. What is the current Required Reserve Ratio?
22. Assume that the FED buys $2,000 in bonds from this bank show the NEW total for the
L.I.
$100
$200
$800
$900
$1,000
Transcribed Image Text:T Chart C Assets Liabilities and Equity Required Reserves $5,000 Demand Deposits $25,000 Excess Reserves $10,000 Business Loans $5,000 Student Loans $10,000 Government Securities $10,000 Owner's Equity $10,000 Total Assets $35,000 Total Liability $35,000 Random 1 Fed Buys Bonds 21. What is the current Required Reserve Ratio? 22. Assume that the FED buys $2,000 in bonds from this bank show the NEW total for the L.I. $100 $200 $800 $900 $1,000
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