macoeconomique

1.     I NEED  IT IN ONE HOUR

Supposed that the reserve requirement is ten percent and the balance sheet of the People’s National Bank? Does the bank looks like the accompanying examples.

ASSETS                                  LIABILITIES vault cash – $20,000checking deposits – $200,000 deposits at fed – 30,000net worth – 15,000

securities – 45,000 loans – 120,000

a)     
What are the required reserves of people national bank? Does the bank have any excess reserves? Required reserves are $20,000 and excess reserves are $30,000

 

b)     
What is the maximum loan that the bank could extend?  

 

c)     
Indicate how the banks’ balance sheet would be altered if it extended this loan.