Essay
A bank has reserves of $50,deposits of $100,loans of $20,and government securities of $30.Assume the desired reserve ratio is 20 percent.
a.What are the bank's assets and what are its liabilities?
b.How much does the bank have in excess reserves?
c.What can the bank do with its excess reserves that will affect the quantity of money?
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a.Assets are reserves,loans,and securiti...View Answer
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