Alpha Bank's balance sheet is shown in the following table If the bank is fully loaned-up, what is its required reserve ratio? Suppose a depositor adds $5,000 to her account with Alpha Bank. Alpha Bank uses the additional deposit to make a loan and the funds are deposited in Beta Bank, which then makes loans so as to be fully loaned-up. What does Beta Bank's balance sheet look like after the new borrowers spend the money they were loaned?

Question

Alpha Bank's balance sheet is shown in the following table  If the bank is fully loaned-up, what is its required reserve ratio? Suppose a depositor adds $5,000 to her account with Alpha Bank. Alpha Bank uses the additional deposit to make a loan and the funds are deposited in Beta Bank, which then makes loans so as to be fully loaned-up. What does Beta Bank's balance sheet look like after the new borrowers spend the money they were loaned?

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The Answer of Alpha Bank's balance sheet is shown in the following table  If the bank is fully loaned-up, what is its required reserve ratio? Suppose a depositor adds $5,000 to her account with Alpha Bank. Alpha Bank uses the additional deposit to make a loan and the funds are deposited in Beta Bank, which then makes loans so as to be fully loaned-up. What does Beta Bank's balance sheet look like after the new borrowers spend the money they were loaned?

Alpha Bank's Balance Sheet Is Shown in the Following Table