BALANCE SHEET OF BANK A (S IN MILLIONS) ASSETS LIABILITIES and NET WORTH Reserves (Cash/Reserves at Fed) 550 Demand Deposits $100 Lonns 20 Govt. Securities 90 Net Worth (Owners' Equity) J. What is the net worth of this bank? 2. If the required reserve is 10%, what is the amount of REQUIRED RESERVES that this bank must hold7 3. What then is the amount of EXCESS RESERVES that this bank is now holding?
BALANCE SHEET OF BANK A (S IN MILLIONS) ASSETS LIABILITIES and NET WORTH Reserves (Cash/Reserves at Fed) 550 Demand Deposits $100 Lonns 20 Govt. Securities 90 Net Worth (Owners' Equity) J. What is the net worth of this bank? 2. If the required reserve is 10%, what is the amount of REQUIRED RESERVES that this bank must hold7 3. What then is the amount of EXCESS RESERVES that this bank is now holding?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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