4) Smart Financial starts its first day of operations with $15 million in capital. A total of $130 million in checkable deposits is received. The bank makes a $25 million commercial loan and another $50llion in mortgages with the following terms: 200 Page 1 of 2 standar, 30-year, fixed rate mortgages with a nominal annual rate of 5.25%, each for $250,000. Assume that required reserves are 11%.

4) Smart Financial starts its first day of operations with $15 million in capital. A total of $130 million in checkable deposits is received. The bank makes a $25 million commercial loan and another $50llion in mortgages with the following terms: 200 Page 1 of 2 standar, 30-year, fixed rate mortgages with a nominal annual rate of 5.25%, each for $250,000. Assume that required reserves are 11%.

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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