The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 2%. Assets Reserves Loans Securities Fixed assets Total $7,500 85,000 21,250 11,250 125,000 Liabilities/Equity Demand Deposits Shareholders' equity Total $100,000 25,000 125,000 a. The Oilers Bank is (Click to select) by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it.

The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 2%. Assets Reserves Loans Securities Fixed assets Total $7,500 85,000 21,250 11,250 125,000 Liabilities/Equity Demand Deposits Shareholders' equity Total $100,000 25,000 125,000 a. The Oilers Bank is (Click to select) by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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