Suppose a Bank Has the Following Balance Sheet If the Required Reserve Ratio Is 10 Percent,how Much Excess

question 64

Essay

Suppose a bank has the following balance sheet:
$\begin{array}{|lr|lr|}\hline\text { Assets } && \text { Liabilities } \\\hline \text { Reserves } & \$ 14,000 & \text { Deposits } & \$ 100,000 \\\hline \text { Loans } & \$ 90,000 & \text { Net Worth } & \$ 4,000\\\hline\end{array}$
If the required reserve ratio is 10 percent,how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?

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Unilever

A multinational corporation that produces numerous consumer goods, including food, beverages, cleaning agents, and personal care products.