Post a New Question

Macroeconomics

posted by on .

A bank has issued 4 billion in transactions deposits and 2 billion in time deposits and other
nontransactions deposits. Its other liabilities and net worth equal 1 billion. The bank has 100 million in total reserves. The only reserve requirement that this and all other banks must satisfy is a 2 percent ratio that applies to transactions deposits.

A. What is the amount of the banks total assets?

B. What is the amount of the banks excess reserves?

C. What is the potential money multiplier for the banking system?

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question