Business, 14.12.2020 19:20 BreadOfTheBear
You have the following data for a bank on a given date:
Reserves = $500m, Deposits = $3,500m, Loans = $3,000m, Net Worth = 0, and RR ratio = 20%.
[Formulas for your use: Assets = Liabilities + Net Worth; RR = RR ratio x Deposits;
Maximum Additional Loan = ER / RR ratio]
Therefore, this bank's required reserves are ___ .
Answers: 3
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You have the following data for a bank on a given date:
Reserves = $500m, Deposits = $3,500m, Loans...
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