Assets Answer: Liabilities. Required Reserves: $30000 Loans $10000 Bonds: $210000 The above is the T-Accounts for TD bank. If the reserve ratio is 10 percent, what is the change in loans after the excess reserves are loaned out? Deposits: $250000 Capital: 0

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...
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Assets
Answer:
Liabilities
Required Reserves: $30000
Loans $10000
Bonds: $210000
The above is the T-Accounts for TD bank. If the reserve ratio is 10 percent, what is the change in loans after the excess
reserves are loaned out?
Deposits: $250000
Capital: 0
Transcribed Image Text:Assets Answer: Liabilities Required Reserves: $30000 Loans $10000 Bonds: $210000 The above is the T-Accounts for TD bank. If the reserve ratio is 10 percent, what is the change in loans after the excess reserves are loaned out? Deposits: $250000 Capital: 0
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