Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves Loans $80,000 $720,000 Liabilities Deposits $800,000
Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves Loans $80,000 $720,000 Liabilities Deposits $800,000
Chapter19: Money Creation
Section: Chapter Questions
Problem 19SQ
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Transcribed Image Text:Use the information for Better Bank below to respond to the next two items.
12.
13.
a.
b.
C.
d.
a.
b.
Assets
Bank Reserves
Loans
C.
d.
If Better Bank's reserve ratio is 10%, Better Bank will hold reserves equal to a minimum
of:
$10,000.
$80,000.
$72,000.
$720,000.
$80,000
$720,000
$10,000.
$72,000.
$720,000.
Liabilities
If the reserve ratio is 10%, then Better Bank can make new loans equal to:
$0.
Deposits $800,000
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