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Business, 21.12.2019 06:31 traphard979

Abank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000. its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. refer to exhibit 17-2. if the bank is required to keep reserves equal to one-third of deposits, what is the level of the bank's excess reserves? how much could it loan out as a result?

a. $700,000; $2,100,000
b. $300,000; $900,000
c. zero; zero
d. $300,000; $300,000

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Abank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1...
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