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Suppose the Required Reserve Ratio Is 20 Percent

Question 109

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Suppose the required reserve ratio is 20 percent. The balance sheet for Bank AAA is given below (figures are in billions). Suppose the required reserve ratio is 20 percent. The balance sheet for Bank AAA is given below (figures are in billions).   (A) How many пew lans can Bank AAA make? (B) If it is not possible to change the anount of bonds, what wauld have to happen to the reserve5, loans, and deposits far this bark? (C) If it is possible to change the amount of bands, how wauld this chenge your mewer to part (B)? (D) If it is not possible to change the ameunt of bands, what wauld heve to happen to the Aeporits in the entire banlang system? (A) How many пew lans can Bank AAA make?
(B) If it is not possible to change the anount of bonds, what wauld have to happen to the reserve5, loans, and deposits far this bark?
(C) If it is possible to change the amount of bands, how wauld this chenge your mewer to part (B)?
(D) If it is not possible to change the ameunt of bands, what wauld heve to happen to the Aeporits in the entire banlang system?

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(A) The bank can make zerd new loans bec...

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