Homework answers / question archive / Suppose you deposit $2,000 cash from under your mattress in First National Bank

Suppose you deposit $2,000 cash from under your mattress in First National Bank

Economics

Share With

Suppose you deposit $2,000 cash from under your mattress in First National Bank. The required reserve ratio is 10%.

Complete the following balance sheet to show changes in the bank's assets and liabilities.

First National Bank

Assets (Dollars) Liabilities(Dollars)

Reserves ________     Checking Deposits  _________  

 Addendum: Changes in Reserves _________

Actual reserves:  _________  

Required reserves    _____________ 

Excess reserves     _____________________

The maximum amount the bank can loan from this deposit is equal to ___________.