Exhibit 19-7 Lower Walloon National Bank

-In Exhibit 19-7,if Mr.Brown pays out all of the proceeds of the loan to Mr.John White who is going to make the renovations of the restaurant,the Lower Walloon National bank will now have:

Question

Exhibit 19-7 Lower Walloon National Bank
 
-In Exhibit 19-7,if Mr.Brown pays out all of the proceeds of the loan to Mr.John White who is going to make the renovations of the restaurant,the Lower Walloon National bank will now have:

Quizplus · Accepted Answer

The bank initially had $6,000 in reserves and $4,000 in loans. When Mr. Brown pays out the loan proceeds, the bank's reserves decrease by $4,000, leaving $2,000 in reserves, and the loans increase to $8,000. The checkable deposits remain at $10,000.