Business, 27.06.2020 02:01, zaylencollins55
The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
Assets Liabilities +Net Worth
Reserves $100,000 Checkable Deposits $300,000
Loans 140,000 Stock Shares 200,000
Securities 60,000
Property 200,000
Refer to the above information. If the original bank balance sheet was for the commercial banking system, rather than a single bank, loans and deposits could have been expanded by a maximum of: (Hint: Since we are looking at the whole banking system the excess reserves of all the banks can be lent, creating new deposits and new lending in the banking system. In short we will have the monetary multiplier effect. To answer this question multiply the excess reserves by the multiplier.
1) $40,000
2) $100,000
3) $200,000
4) $300.000
Answers: 1
Business, 22.06.2019 10:20, LadyHolmes67
Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.
Answers: 1
The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 perce...
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