Question

A bank currently has $\$ 100,000$ in checkable deposits and S15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has serve ratio is 14 percent, the bank has creating potential. LO36.3 a. $\$ 20,000 ; \$ 14,000$ b. $\$ 3,000 ; \$ 2,100$ $\mathbf{c} .-\$ 5,000 ; \$ 1,000$ d. $\$ 5,000 ; \$ 1,000$

          A bank currently has $\$ 100,000$ in checkable deposits and S15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has serve ratio is 14 percent, the bank has creating potential. LO36.3
a. $\$ 20,000 ; \$ 14,000$
b. $\$ 3,000 ; \$ 2,100$
$\mathbf{c} .-\$ 5,000 ; \$ 1,000$
d. $\$ 5,000 ; \$ 1,000$

Added by Teresa D.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Aarti Kumari

12/09/2021

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20 * $100,000 Required reserves = $20,000 Show more…

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A bank currently has $$ 100,000$ in checkable deposits and $15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has excess reserves of; if the reserve ratio is 14 percent, the bank has money-creating potential. a. $$ 20,000 ; $ 14,000$ b. $$ 3,000 ; $ 2,100$ c. $-$ 5,000 ; $ 1,000$ d. $$ 5,000 ; $ 1,000$