Suppose that the legal reserve ratio set by the fed is 10% and that the fair bank in fairdealing, missouri, initially has checkable deposit equal to $270 and a reserve account of $70. a customer of fair bank deposits $100 into her checking account. fair bank loans 80% of the deposit and places the rest in its reserves at the st. louis fed. for simplicity, assume the borrower received the loan as cash. how much does fair bank have in excess reserves after the deposit and loan?
place the figures below to represent changes in the accounts of fair bank and the federal reserve of st. louis\' balance sheets resulting from the deposit and loan.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Answer94% contained violence;