ANSWERS TO QUESTIONS

9,000 49,000 Loans 100,000 Net worth 110,000 Phys. assets 50,000 Total Assets 159,000 Total Liabilities and . net worth 159,000. b. The reserve ratio is now 18 percent. This is less than the required 20 percent. The bank must decrease loans by $800 to meet the reserve requirement. But this shows up as $800 less in demand deposits and 800 less ... ................
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