Assets Liabilities Total Reserves 2,000,000 Transaction Deposits Required Excess Govt. Sec. 2,225,000 Loans Total Assets Total Liabilities Assume the required reserve rate is 20%. What are required reserves for the Wells Fargo Bank 750,000

Assets Liabilities Total Reserves 2,000,000 Transaction Deposits Required Excess Govt. Sec. 2,225,000 Loans Total Assets Total Liabilities Assume the required reserve rate is 20%. What are required reserves for the Wells Fargo Bank 750,000

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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Question

100%

2.
Assets
Liabilities
Total Reserves
2,000,000
Transaction Deposits
Required
Excess
Govt. Sec.
2,225,000
Loans
Total Assets
Total Liabilities
a. Assume the required reserve rate is 20%. What are required reserves for this bank?
b. What are transactions deposits and total liabilities for the bank?
c. How much more money can this bank loan out at this time?
Wells Fargo Bank
750,000

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